The latest World Energy 2023 report has unearthed a shocking decline of 92% in Nigeria’s crude oil refining output over the past decade, sparking concerns and drawing attention to the nation’s faltering energy sector.
In 2012, the country boasted a robust production level of 92,000 barrels per day (bpd) in refining capacity, but by 2022, this figure drastically nosedived to a meager 6,000 bpd, marking a significant downturn in the nation’s refining capabilities. The unsettling data, outlined in the Energy Institute’s 72nd edition report, aligns with findings in the Organisation of the Petroleum Exporting Countries’ (OPEC) Annual Statistical Bulletin 2023.
OPEC’s report highlighted Nigeria’s stark decline in crude oil refining capacity, plummeting from 33,000 bpd in 2018 to 6,000 bpd in 2022, signaling an 81% decrease in production output. Despite Nigeria’s ownership of four government-run refineries—two in Port Harcourt, and one each in Warri and Kaduna—with a combined capacity to process approximately 4.45 million barrels of crude oil daily, the country heavily relies on importing refined petroleum products.
To address this crisis, Minister of State for Petroleum, Heineken Lokpobiri, previously announced plans for the Port Harcourt refinery to commence operations by year-end after experiencing several delays.
Echoing Lokpobiri’s sentiments, Mele Kyari, the Group Chief Executive Officer of the Nigerian National Petroleum Corporation Limited (NNPCL), affirmed that the Port Harcourt refinery is scheduled to begin operations in December 2023, followed by the Warri refinery in early 2024 and the Kaduna refinery by year-end. Kyari expressed confidence in ending fuel importation by 2024, aiming to reinstate the nation’s self-sufficiency in refined petroleum products.
“I can confirm that by the end of December this year, the Port Harcourt refinery will commence operations. Early in the first quarter of 2024, the Warri refinery will follow suit, and by the end of the same year, the Kaduna refinery will be operational. We are resolute in ending fuel importation by the end of 2024. I am very optimistic that this will become a reality,” Kyari emphasized.
The looming deadline set by the federal government under President Bola Ahmed Tinubu intensifies efforts to reinvigorate Nigeria’s refinery operations, aiming to salvage the country’s energy sector from the brink of collapse.
