Nigeria Sets Target to Revive Four State Oil Refineries by the End of 2024

Nigeria is anticipating the full operation of its four oil refineries by the conclusion of the coming year, as highlighted by the country's newly appointed oil minister. The Port Harcourt refinery, situated in the southern region, is even projected to initiate operations as early as December.

In the preceding year, the government had announced its intention for the Port Harcourt refinery to commence crude processing by the close of 2022. Nevertheless, various oil ministers and executives of NNPC Ltd have unveiled a series of unsuccessful strategies aimed at relaunching, modernizing, or expanding these refineries.

Heineken Lokpobiri, who recently took on the role of Nigeria's minister of state for petroleum, carried out an inspection of the ongoing renovation work at the two-unit 210,000-barrel capacity Port Harcourt refinery on a Friday. His assessment prompted an optimistic outlook, as he asserted, "From what we have seen here today, Port Harcourt refinery will come on board by the end of the year." Additionally, Lokpobiri indicated that two other facilities located in Warri and Kaduna are slated to commence crude processing sometime between the first quarter and the culmination of 2024.

Lokpobiri emphasized that the ultimate aim of these endeavors is to reduce and eventually cease Nigeria's dependency on fuel imports. This ambition is propelled by the fact that Nigeria, a key oil-producing nation in Africa, currently imports most of its refined fuel due to limitations in production capacity and inadequate maintenance practices.

The four state-owned refineries, all of which have been inoperable for years, present a significant challenge. These dilapidated facilities consist of the 110,000-barrel capacity Kaduna plant in the northern region, along with three units situated in the oil-rich Niger delta, including the 125,000-barrel capacity Warri refinery.

Noteworthy progress is being made in the refurbishment of the Port Harcourt refinery due to a $1.5 billion contract awarded to Italy's Tecnimont in 2021. The extensive renovation efforts are expected to span a duration of 44 months, with completion targeted in line with the oil ministry's announcement in April of the previous year.

Looking beyond the current efforts, Nigeria is pinning its hopes of eradicating the need for fuel imports on a colossal 650,000 barrel per day refinery. This refinery is being constructed under the stewardship of Aliko Dangote, who holds the distinction of being Africa's wealthiest individual.

In conclusion, Nigeria's aspiration to restore its four oil refineries to operational status by the conclusion of the upcoming year reflects a commitment to bolstering domestic fuel production and reducing dependency on imports. The ongoing efforts to revamp the Port Harcourt refinery and the projected timelines for the commencement of operations in the Warri and Kaduna facilities underscore the nation's determination to overcome longstanding challenges in its oil refining sector. Furthermore, the ambitious project led by Aliko Dangote offers a promising prospect for Nigeria's self-sufficiency in fuel production, potentially marking a significant shift in the country's energy landscape.