Owners of small refineries in Nigeria, such as the Dangote Petroleum Refinery, assert that if the federal government cooperates with their plans, they can assist the nation in ceasing the importation of refined petroleum products in 18 months.
Speaking on behalf of the Crude Oil Refiners Association of Nigeria, the refiners stated that more refineries are in various stages of completion to join the Dangote Petroleum Refinery, which has a capacity of 650,000.
The Dangote refinery and others around the nation can meet the country’s petroleum needs, according to CORAN Publicity Secretary Eche Idoko in an interview.
Idoko’s remarks coincide with statements made by Farouk Ahmed, the CEO of the Nigerian Midstream and Downstream Regulatory Authority, who stated that the nation will not halt petroleum imports in order to violate the Dangote monopoly and ensure energy security.
The CORAN official argued that there was no way the government would tackle rising inflation if it did not address the high cost of fuel, especially by working with the local refiners.
“You can’t tackle inflation if you don’t address the pump price of petroleum products. You cannot say you have a plan to step down inflation and you are not involving the key sectors like the refineries; you have to involve us. Let’s work together.
“And Colin is saying that, in 18 months, if the Nigerian government will work with our programmes and plans, we can stop the importation of petroleum products completely. There are refineries in different stages of completion. In 18 months, we can produce what Nigeria will consume,” he stated.
Idoko said Nigeria has enough crude oil to feed Dangote and other refineries, but noted that crude theft has been a major challenge to the upstream oil sector.
“We have the crude oil to feed these refineries, and more fields are being licensed by the day. So, there will be crude to feed the refineries. Our production figure is dropping because of the crude that is being stolen daily.
“When we have local refineries, crude theft will be reduced. People steal crude through the pipelines, and most of the refineries are located close to some of these fields. What this does is that the crude oil producers will no longer need to pump their crude through the pipelines to the terminal for export.
“The local refineries will just truck from the fields, get a short pipeline, or barge from their fields to these places. We are losing heavily because unscrupulous elements are stealing crude from the long pipelines,” Idoko stated.
The CORAN official said the international oil companies are supposed to sell crude oil to local refineries at a price lower than the international price.
He asked the Federal Government to ensure that crude oil is sold in naira and not dollars, saying this would reduce the cost of fuel production and the pressure on the local currency. He mentioned that ending the importation of fuel would strengthen the naira against the dollar, asking that the IOCs should start selling fuel directly to local refiners instead of referring them to their trading agents in Europe.
The NMDPRA boss had earlier warned that Nigeria could not rely heavily on the Dangote refinery for its fuel supply. According to him, the refinery had requested the regulator stop giving import licenses to other marketers to be the only fuel supplier in Nigeria.
“We cannot rely heavily on one refinery to feed the nation because Dangote is requesting that we suspend or stop importation of all petroleum products, especially AGO and direct all marketers to the refinery, That is not good for the nation in terms of energy security. And that is not good for the market because of monopolies,” Ahmed stressed.
However, the President of Dangote Group, Aliko Dangote, denied the allegation, wondering how he could be a monopoly when the Nigerian National Petroleum Company Limited is renovating government-owned refineries with $4 billion.
Many Nigerians have been calling on the Federal Government to support local refineries and stop the importation of fuel. They expressed hope that this would crash the pump price of gasoline and diesel.
Dangote, who has been lamenting over the alleged refusal of the international oil companies to supply crude to his refineries, recently said he would begin the supply of petrol between August 10 and 12.
