By Chukwuemeka Umesi
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Nigeria, Africa’s largest oil producer, has long been plagued by the irony of importing refined petroleum products despite its vast crude oil reserves. However, the tide is turning as local refineries, led by the Dangote Petroleum Refinery, gear up to end the country’s dependence on foreign fuel imports.
The Crude Oil Refiners Association of Nigeria (CORAN) has boldly declared that, with government support, local refineries can meet Nigeria’s fuel needs within 18 months, thereby eliminating the need for imports. CORAN Publicity Secretary, Eche Idoko, emphasized the critical role of local refineries in addressing the country’s fuel challenges, stating that tackling inflation requires addressing fuel prices, which can be achieved by involving local refineries in the process.Idoko’s statement
underscores the interconnectedness of fuel prices, inflation, and economic growth. By supporting local refineries, the government can reduce fuel costs, ease inflationary pressures, and stimulate economic development. Local refineries can also help reduce crude oil theft, which has hindered the upstream oil sector, by providing an alternative to long-distance pipelines vulnerable to theft and sabotage.
The Dangote Petroleum Refinery, with a capacity of 650,000 barrels per day, is poised to play a pivotal role in Nigeria’s quest for energy self-sufficiency. President of Dangote Group, Aliko Dangote, has consistently advocated for government support to ensure the success of local refineries, highlighting the need for crude oil allocation, cooperation from international oil companies, and regulatory agency collaboration.
Dangote has also denied allegations of producing low-quality diesel, stating that the refinery produces diesel that meets and exceeds Nigerian standards. Shareholders have rallied around Dangote, commending his commitment to national development and urging support for local refineries. The Pragmatic Shareholders Association of Nigeria noted that Dangote’s investments contribute significantly to economic
development through tax payments, job creation, and consistent returns for shareholders. The Dangote Group has also accused international oil companies (IOCs) of frustrating crude supply to the refinery, prioritizing Asian countries, and selling at inflated prices. Vice President of Dangote Industries Limited, Mr. DVG Edwin, emphasized the need for a willing-buyer, willing-seller
relationship between local refineries and crude oil producers, as mandated by the Petroleum Industry Act.In conclusion, Nigeria’s local refineries, led by the Dangote Petroleum Refinery, are poised to revolutionize the country’s energy landscape by ending fuel importation. With government support, these refineries can meet Nigeria’s fuel needs, reduce inflation, and stimulate economic growth. By supporting local refineries, Nigeria can unlock its vast energy potential, ensure energy self-sufficiency, and propel itself towards economic prosperity. The success of local refineries will also have far-reaching benefits for the Nigerian economy, including:
Reduced fuel costs and inflation Increased economic growth and development Improved energy security and self-sufficiency Enhanced government revenue through tax payments Job creation and stimulation of local economies Reduced dependence on foreign fuel imports As Nigeria moves towards energy self-sufficiency, it is crucial for the government to provide the necessary support to local refineries, ensuring a willing-buyer, willing-seller relationship between refineries and crude oil producers, and addressing the challenges of crude oil theft and sabotage.
With the right support and policies in place, Nigeria’s local refineries can drive economic growth, reduce inflation, and propel the country towards a brighter energy future.