Despite the allocation of $1.5 billion for the rehabilitation of the Port Harcourt refinery in 2021, as well as an additional $1.4 billion for the Warri and Kaduna refineries, these facilities remain idle, perpetuating Nigeria’s dependence on imported fuels.
At a press conference on Friday, October 25, Dr. Opialu Fabian, a leading advocate, expressed concerns about the commitment of the Nigerian National Petroleum Corporation (NNPC) to the rehabilitation of the refineries.
“These failures place Africa’s largest oil producer in an ironic position, entirely dependent on imported petroleum products,” Fabian said, highlighting the implications for Nigeria’s economy, fuel prices and foreign reserves.
Fabian accused some entities of the NNPC of intentionally delaying the progress of the refineries in order to sustain the lucrative fuel importation business.
He also condemned the continued importation of adulterated fuels, which he said had worsened inflation, weakened the naira and subjected Nigerians to endless queues at filling stations.
“We are no longer willing to stand by while the nation’s potential is squandered by irresponsible leaders,” Fabian said.
He demanded a complete overhaul of the management of the NNPC and transparency in the allocation of funds to the refineries.
This failure of the refineries in Nigeria highlights a deep-seated structural problem that is hampering the country’s development and its ability to fully benefit from its natural resources. Inefficient management, recurring delays and lack of accountability appear to be the major obstacles that need to be overcome if Nigeria is to truly benefit from its oil industry. A radical change in the way operations are conducted and total transparency in resource management seem necessary to break this impasse and enable Nigeria to become a major player on the global oil scene.