A startling revelation in the World Energy 2023 report has exposed Nigeria to a staggering 92% decline in crude oil refining output over the past ten years, raising serious concerns about the nation’s energy sector. The report, featured in the 72nd edition of the Energy Institute’s publication, mirrors findings in the Organisation of the Petroleum Exporting Countries’ (OPEC) Annual Statistical Bulletin 2023.
According to the report, Nigeria’s crude oil refining capacity witnessed a drastic drop from 92,000 barrels per day (bpd) in 2012 to a mere 6,000 bpd in 2022, marking a significant deterioration in the country’s ability to process crude oil.
OPEC’s Annual Statistical Bulletin echoed these concerns, highlighting an 81% decrease in Nigeria’s crude oil refining capacity, falling from 33,000 bpd in 2018 to 6,000 bpd in 2022. Despite owning four government-owned refineries, with two in Port Harcourt and one each in Warri and Kaduna, capable of processing approximately 4.45 million barrels of crude oil daily, Nigeria remains heavily dependent on importing refined petroleum products.
In response to this crisis, the Minister of State for Petroleum, Heineken Lokpobiri, announced plans for the Port Harcourt refinery to commence operations by the end of the current year after facing several delays. Mele Kyari, the Group Chief Executive Officer of the Nigerian National Petroleum Corporation Limited (NNPCL), affirmed that the Port Harcourt refinery is scheduled to begin operations in December 2023, followed by the Warri refinery in early 2024 and the Kaduna refinery by the end of the same year.
During a meeting with the Speaker of the House of Representatives, Tajudeen Abbas, Kyari expressed confidence in ending fuel importation by 2024, aiming to restore Nigeria’s self-sufficiency in refined petroleum products. He stated, “We will no longer discuss fuel importation by the end of 2024. I am very optimistic that this will crystallize.”
The looming deadline set by the federal government under President Bola Ahmed Tinubu underscores the urgency to revitalize and restore Nigeria’s refinery operations, seeking to salvage the country’s energy sector from the brink of collapse.
