Labor Party’s presidential candidate, Peter Obi, has said that some modular refineries in Nigeria are lacking in crude oil supply.
Mr. Obi stated this during an Arise TV interview on Sunday, February 5. According to him, Nigeria’s fuel crisis problem can best be tackled with effective local refining. However, inadequate crude oil supply has been a hindrance. He said:
- “Dangote’s refinery is almost complete and we have other refineries all over the place. Some are even ready but they can’t get the supply of crude, these are things we have to resolve as quickly as possible and get local production to commence in order to reduce the suffering of Nigerians.”
Fuel subsidy: Mr. Peter Obi also reiterated his campaign position on fuel subsidy, stressing that he will remove it as soon as possible if succeeds in becoming Nigeria’s next president. He said:
- “Everybody knows my stance on subsidy, it has to go as quickly as possible because for me, it is organized crime, but in doing so, we must ensure that the local refineries start working. We need to make sure that the less privileged people do not suffer any longer in Nigeria. For me, the government’s energy should be on protecting and serving the less privileged and small businesses, which is critical.”
Current realities: Nairametrics recently reported that the Group Chief Executive Officer of NNPC Limited, Mele Kyari, said that the Federal Government had acquired shares in four private refineries operating in different parts of the country as part of ongoing efforts to ensure Nigeria’s energy security.
The refineries include 650,000 barrels per day (bpd) integrated Dangote Refinery in Lagos state, 12,000 bpd Azikel Modular Refinery in Bayelsa state, 5,000 bpd Waltersmith Modular Refinery in Imo state, and 2,500 bpd Duport Modular Refinery in Edo state.
Further commenting on FG’s stake in these refineries, Nigeria’s Minister of State for Petroleum Resources, Timipre Sylva, said that Dangote Refinery has an established crude oil supply contract with the NNPC, but that some modular refineries usually access crude oil from private sector owners of assets that are closer to the refineries.
For the record: In September 2022, members of the Oil Refiners Association of Nigeria appealed to the NNPC that modular refinery owners with evidence of feedstock challenge be given preference in the allocation of NNPC’s crude oil.
They also suggested that crude oil from the NNPC be sold to modular refinery owners in Naira according to prevailing market rates with the guarantee that all the refined fuel be sold in Naira in line with the market price in-country.
Meanwhile, Nairametrics recently reported that the 6,000 barrels per day (bpd) Edo modular refinery recently received its first supply of crude oil despite being ready to begin operations since June 2021. The modular refinery got its first supply of 10,000 barrels of crude feedstock from Decklar Resources Inc. and its co-venturer, Millennium Oil & Gas Company Limited which operates the Oza oil field.