The ongoing fuel crisis in Nigeria is being exacerbated by the limited capacity of the nation’s national refineries, according to energy experts. Despite recent government announcements regarding the planned resumption of operations at these refineries, experts warn that their combined output is insufficient to meet the country’s growing fuel demand.
Daniel Kunle, a former technical adviser to the Minister of Petroleum Resources, revealed in an interview on Channels Television that the four national refineries, even when operating at full capacity, can only produce approximately 20 million liters of petrol per day. This figure falls far short of Nigeria’s daily consumption, which is estimated to be around 40 million liters.
Kunle emphasized that the country’s refineries are not capable of achieving energy self-sufficiency, even if they were all fully functional. “The four government refineries combined will not give Nigeria more than maybe 20 million liters per day of petrol,” he stated.
All Hope on Dangote Refinery
In contrast, the Dangote refinery, is poised to play a significant role in addressing Nigeria’s fuel shortage. With a production capacity of approximately 50 million liters of petrol per day, the Dangote refinery is expected to secure the country’s fuel supply and boost its economic sovereignty.
“Dangote refinery alone will do about 50 million liters of petrol per day. That means it’s going to secure this country’s supply,” Kunle added.
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National Refineries Rehabilitation
While the government has expressed optimism about the imminent resumption of operations at the national refineries, particularly the Port Harcourt refinery, concerns remain regarding their ability to meet their stated targets. The Independent Petroleum Marketers Association of Nigeria (IPMAN) has announced that the Port Harcourt refinery is on track to produce petroleum products by August, but doubts persist given the refinery’s history of delays and challenges.
The Nigerian National Petroleum Company (NNPC) boss, Mele Kyari, has also assured that the Port Harcourt refinery will commence operations in August and that the other three refineries in Kaduna and Warri will follow suit in the second half of 2025. However, these projections have been met with skepticism due to previous failed attempts to restart the refineries.
The Impact of Fuel Shortages
The inadequate refining capacity has contributed to recurring fuel shortages and price fluctuations in Nigeria. These shortages have had a ripple effect on the economy, affecting transportation, agriculture, and other sectors that rely on fuel. The government has often resorted to importing fuel to supplement domestic production, leading to a significant outflow of foreign exchange.
The country’s continued dependence on imported fuel exposes it to global price fluctuations and supply chain vulnerabilities. This reliance on external sources can limit Nigeria’s economic sovereignty and hinder its development aspirations.
If You Ask Me
The limited capacity of Nigeria’s national refineries underscores the urgent need for alternative solutions to address the country’s fuel crisis. Diversifying fuel sources, improving energy efficiency, and investing in renewable energy are crucial steps towards achieving energy security and reducing dependence on imported petroleum products.
As the country continues to grapple with fuel shortages and rising prices, the Dangote refinery’s imminent completion offers a glimmer of hope. However, the long-term sustainability of Nigeria’s energy sector will require a comprehensive and strategic approach that addresses the underlying challenges and ensures a reliable and affordable supply of fuel for the population.
