The Nigerian Extractive Industries Transparency Initiative (NEITI) has called on the Nigerian National Petroleum Company Limited (NNPCL) to hasten the ongoing rehabilitation efforts of two key refineries—the Port Harcourt Refinery (Phase Two) and the Kaduna Refinery. In a statement released by NEITI’s Acting Director of Communication & Stakeholders Management, Mrs. Obiageli Onuorah, the watchdog organization emphasized the need for urgency in restoring these critical national assets to full operational capacity.
NEITI’s appeal came after it commended NNPCL for the successful completion of the first phase of the Port Harcourt Refinery’s rehabilitation, alongside the gradual resumption of operations at the Warri Refinery. These achievements mark significant milestones in Nigeria’s ongoing efforts to reduce its reliance on imported petroleum products and strengthen the country’s energy security.
In its statement, NEITI pointed out that the rehabilitation of these refineries is essential for achieving energy self-sufficiency and fostering long-term economic sustainability. “By reducing the staggering costs associated with fuel importation, this milestone will positively impact Nigeria’s foreign exchange reserves and create a ripple effect across key sectors of the economy,” the statement read.
The watchdog organization also emphasized that the revitalization of the Port Harcourt and Warri refineries would have far-reaching effects, including creating jobs, stimulating local industries, and freeing up critical funds for other national priorities, such as healthcare, education, and infrastructure development.
In an important reference to its recent 2023 Industry Report for the Oil and Gas sector, NEITI highlighted the substantial financial burden Nigeria has shouldered in fuel subsidies over the past 18 years. According to the report, between 2006 and 2023, a staggering N15.87 trillion was spent on fuel subsidies, with 2022 alone accounting for N4.714 trillion. NEITI also revealed that Nigeria’s fuel importation peaked in 2022, with 23.54 billion liters imported. However, following the removal of the fuel subsidy, import volumes saw a decline in 2023, down by 14% to 20.28 billion liters.
“NEITI is delighted that the huge payments expended on subsidy will henceforth be available to support national development, the ongoing rebuilding of national infrastructure, and poverty reduction,” the statement added. This shift in financial resources is seen as a crucial step toward redirecting funds that were previously used to subsidize fuel imports into more productive sectors of the economy.
NEITI expressed its appreciation for the resilience and determination demonstrated by the NNPCL team in executing the complex and challenging task of rehabilitating Nigeria’s refineries. The organization reaffirmed its commitment to supporting NNPCL’s efforts, highlighting the importance of collaboration with national and global partners to ensure the success and sustainability of these projects.
Read More:
- MOSOP Demands Inclusivity in Federal Talks on Ogoni Oil Resumption
- Pipeline Vandals Blamed for Buguma Wellhead Fire – NNPC
It is also worth noting that as part of its ongoing role as a key stakeholder in Nigeria’s energy sector, NEITI pledged to continue working closely with NNPCL to safeguard the long-term success of the refinery rehabilitation projects. “We stand ready to collaborate with NNPCL to sustain and expand these gains in the national interest and Nigeria’s energy security,” the statement concluded.
It bears mentioning that the call for accelerated action comes at a pivotal time for Nigeria, as the country grapples with the broader challenges of energy security, economic diversification, and fiscal stability. The outcome of these refinery rehabilitation projects could play a crucial role in reshaping Nigeria’s energy landscape and reducing its dependency on imported fuel, thereby contributing to a more resilient and self-sufficient economy in the years ahead.
