By…Abba Hamisu Sani
Africa-Press – Nigeria. Nigeria is the leading crude oil producer in Africa even though recently available statistic has shown that Angola is producing more than Nigeria due to several reasons that include pipe vandalism.
According to Bloomberg survey of Monthly, OPEC out put Nigeria ‘s crude oil production stand at 1.13 million barrels.
Despite Nigeria’s position in the global ranking of oil production yet fuel scarcity remain one of the major problem faced by the largest black Nation.
In ability of Nigeria’s refineries to function is the major course of fuel scarcity in the Country.
The downstream sector of the Nigeria’s oil industry comprises four refineries; two in Port Harcourt, one in Warri, and the other in Kaduna; all of which are under the control and administration of Nigeria National Petroleum Company (NNPC).
These refineries are incapacitated due to corruption and mismanagement .
Successive administrations spent huge amount of money in rehabilitating the refineries at different Point but the facilities yet to function.
Will the intervention of Private Sector like Dangote refinery initiative change the situation ?
Dangote Oil Refinery is a 650,000 barrels per day integrated refinery project under construction in the Lekki Free Trade Zone, Lagos. It is expected to be Africa’s biggest oil refinery and the world’s biggest single-train facility.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has recently disclosed that the Dangote Petroleum Refinery, upon which the hope of the nation rests for fuel sufficiency is now 97 per cent completed. The agency also commended the work done on the project.
The refinery, is expected to double the total output of Nigeria’s existing ailing refining infrastructure and meet 100 per cent of the Nigerian requirement of all refined products.
The NMDPRA made this disclosure in Abuja when representatives of the Dangote Petroleum Refinery visited the headquarters of the Agency to present the work plan for the facility for 2022/2023.
The successful completion of Africa’s biggest petroleum refinery and the world’s largest single-train facility is expected to have a significant impact on Nigeria’s foreign exchange through import substitution and substantial savings in earnings.
It is expected, that once the refinery commences production, the pressure on the nation’s currency will reduce and significant inflow of forex, is expected to come in through sales from the refinery.
On completion of the refinery, it is estimated that Nigeria will import zero petroleum oil products down from approximately $50 billion current oil product imports per year.
NMDPRA’s Chief Executive, Mr Farouk Ahmed, reiterated the importance of the Dangote petroleum Refinery to the country while assuring that the Authority will give all necessary support to ensure timely completion and kick-start operations.
Speaking on the refinery project, Group Executive Director, Strategy, Portfolio Development & Capital Projects, Dangote Industries Limited, Mr. Devakumar Edwin said the refinery would stimulate economic development in Nigeria, adding that it can meet 100 per cent of the Nigerian requirement of all liquid products (Gasoline, Diesel, Kerosene and Aviation jet), and also have surplus of each of these products for export.
The high volume of petrol output from the refinery would transform Nigeria from a petrol import-dependent country to an exporter of refined petroleum product he stated adding that the refinery would produce Euro-V quality gasoline, diesel, jet fuel, kerosene and poly-propylene for local consumption and also have surplus of each of the products for export.
On employment generation, he disclosed that over 30,000 people are currently working at petroleum Refinery project sites through various contractors noting that when operational, the refinery will generate over 100,000 direct and indirect jobs for the youths.
On local content development, Edwin said the company had trained over 600 artisans selected from the host communities in the areas of masonry, AC electricians, plumbing, welding, iron bending and auto mechanics.
The refinery design, according to the company, conforms to World Bank, , United States Environmental Protection Agency (EPA), the European Union (EU), and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) standards.
The refinery has its own dedicated steam and power generation system with adequate standby units of reliable/uninterrupted utility supply to operating plants.435 Power plant in refinery.
He added that the facility also has self-sufficient marine facility with the ability for freight optimisation; the largest single order of 5 SPMs anywhere in the world; Crude SPM for unloading ships up to ULCCs; 3 product SPM for product exports up to Suez Max vessels and 2 X 48 subsea crude pipelines with interconnection.
Dangote industries has developed a port and constructed quays with a loading bearing capacity of 25 tonnes/sq meters to bring Over Dimensional Cargoes close to the site directly to handle liquid cargoes.
The jetty is situated at a distance of 12.3 km from the refinery thereby effectively reducing the travel time.
The Group Executive Director stated that Dangote Petroleum Refinery maintains high standards for all its business practices, valuing health, safety, environment and rights for its employees, compliances with all applicable local and international laws, and being a committed partner to communities, governments and the environment.
He said Nigeria started oil production in commercial quantity as far back as 1958 so the country spent about sixty four years exporting crude oil to other Countries.
Dr. Kani stated that Nigeria is the number ten oil producer globally and number one in Africa presently.
The economist added that Nigeria’s four refineries that have the capacity of refining four hundred and forty five thousand barrel per day were established between 1965 to 1989
So from 1989 to date there was no any effort by the government to construct new refinery or to ensure the existing ones are functioning fully.
The analyst expressed that according to the latest data published by Nigerian National petroleum Company (NNPC. daily consumption of petroleum in Nigeria is Sixty six million litres per day and if what the four Nigerian refineries are producing is converted to barrels is less than one hundred thousand lbarrel per day.
Dangote refinery capacity is capable of ending fuel scarcity in Nigeria
Dr. Abdussalam K’ani expressed optimism that Dangote’s refinery under construction is capable of ending fuel scarcity in Nigeria as it has the capacity to export to other Countries.
As what Nigeria only need is not more than sixty six million litres on daily basis but the facility has the capacity of refining six hundred and fifty thousand barrel per day .
The economist said if what Dangote refinery produce will not be diverted and Government will provide the company with all necessary incentives such as tax relieve ,the fuel scarcity in Nigeria will be a thing of past when the refinery begin to work at hundred percent capacity
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