Nigerian Government’s Ultimatum: License Revocation Looms for Inactive Refineries

The Nigerian government has issued a stern warning, expressing its intention to withdraw licenses from inactive refineries.

Heineken Lokpobiri, the Minister of Petroleum Resources (Oil), highlighted the issue of insufficient crude supply as a major setback for these refineries. According to Lokpobiri, the Port Harcourt refinery is anticipated to resume operations by the end of the current year.

Threats Loom for Idle Refineries

The Minister of Petroleum Resources (Oil), Heineken Lokpobiri, has sounded the alarm on numerous licensed modular refineries in Nigeria grappling with feedstock challenges. The absence of adequate feedstock has rendered these refineries non-operational, with their productivity at a standstill.

Speaking at a recent ministerial retreat in Abuja, Lokpobiri emphasized the necessity of scaling up crude production to facilitate the functioning of both major and modular refineries. “Our focus is to amplify production to cater not only to the larger refineries but also to the crucial modular refineries, which significantly contribute to employment generation and overall economic development,” asserted the minister.

Accountability for Refinery Failures Shifts to NNPC

In a significant move, the Nigerian National Petroleum Company Limited (NNPCL) will now be held responsible should the national refineries fail to meet their respective timelines.

Lokpobiri confirmed that the government remains steadfast in its commitment to revamp the Port Harcourt, Kaduna, and Warri refineries, citing ongoing progress at these sites. “We have thoroughly inspected the facilities. Phase three of the Port Harcourt refinery is on track for completion this year.

Additionally, the Warri refinery’s phase one is projected to conclude by year-end, followed by phases two and three in Port Harcourt next year. The Kaduna refinery is scheduled for completion by the end of the following year,” Lokpobiri announced, stressing the government’s unwavering dedication to enforcing these deadlines.

New Refineries Commence Operations in Edo State

Promising news emerges as two refineries kick-start operations in Edo State. Simbi Wabote, the Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), disclosed that these two new refineries will contribute to Nigeria’s daily refining capacity of 1.5 million barrels.

The Edo Refinery and Duport Midstream Refinery are currently engaged in refining petrochemical products and are poised to commence petrol refining once crude oil supplies are secured.

52 Oil Companies Directed to Supply Crude to Emerging Refineries

To mitigate the dependence on imports and consolidate its position as a leading oil producer in Africa, the Nigerian government has instructed approximately 52 oil companies in the country to furnish crude oil to the emerging refineries. This proactive measure aims to preempt any potential crisis in the supply chain and reinforce the nation’s self-sufficiency in oil refining.

Dangote Refinery’s Production Delayed Amidst Rising Modular Refinery Initiatives

Recent reports have revealed that the Dangote Refinery, among other domestic refineries, faced production delays due to inadequate crude oil supply. The highly anticipated Dangote Refinery failed to meet its October production deadline, marking the second instance in 2023 that it has missed a crucial operational target since its commissioning on May 22, 2023.