The urgent need for action on Nigeria’s refineries
The prolonged turnaround maintenance of Nigeria’s refineries, especially the Port Harcourt facility, has become a troubling saga. Launched before 2021, this initiative has devoured millions of Naira without producing tangible results. As a result, the hope for these refineries to resume operations has faded, leaving many Nigerians disillusioned and frustrated.
For years, government officials have repeated promises of restoration, but these have turned into empty assurances. The situation has been exacerbated by the timely completion of Alh. Aliko Dangote’s refinery, which stands in stark contrast to the government’s ongoing failures. While Dangote’s facility has successfully begun operations, the Federal Government’s efforts through NNPCL remain unfulfilled, leaving citizens wondering when they will see relief at the pump.
Compounding the issue, NNPCL has unnecessarily delayed Dangote’s fuel distribution, raising confusing questions about crude supply logistics and payment currency. This confusion is baffling; Nigeria has a clear official currency, and such discussions should not even arise. Furthermore, concerns regarding the quality of Dangote’s fuel have stalled its rollout, pushing the promise of restarting Port Harcourt’s refinery into the background.
Now that the hurdles for Dangote’s fuel have been cleared, NNPCL has positioned itself as the sole buyer. This raises critical questions about the role of a government agency in the private sector. It is unprecedented for a government body to dictate terms to a private enterprise without contributing to the costs involved. The recent claim by NNPCL that Dangote sold fuel at N898 per litre was promptly refuted by Dangote’s representatives, highlighting a troubling lack of accountability.
Public outcry is growing as many families struggle to afford basic necessities amid rising fuel prices. Current pump prices in Port Harcourt range from N1,250 to N1,500 per litre, significantly impacting the cost of living. The abrupt removal of fuel subsidies has only worsened the situation, and the Tinubu administration has yet to implement measures to reverse this trend.
The time for action is now. The federal government must take responsibility and restore public refineries to full operational capacity. Even developed nations subsidise essential commodities; Nigeria, as a developing country, should follow suit.
If the government truly supports deregulation in the petroleum sector, it must refrain from imposing price controls or interfering with market dynamics. Allowing competition to dictate prices based on supply and demand is essential for a healthy economy.
Moreover, the government must ensure that Dangote Refinery receives sufficient crude at a fair price to provide fuel to Nigerians at affordable rates. There is an urgent need for the government to demonstrate the political will to alleviate the economic hardships faced by its citizens.
Additionally, the government should foster transparency and accountability within the petroleum sector. Regular updates on the status of refinery maintenance and operations can help rebuild public trust. Engaging with stakeholders, including independent marketers and consumers, will create a more inclusive approach to addressing the myriad challenges facing the industry.
Investment in infrastructure and technology is also crucial. Modernising our refineries will not only increase efficiency but also enhance product quality. By prioritising these improvements, Nigeria can position itself to meet its energy needs sustainably and become less reliant on imports, ultimately stabilising fuel prices for consumers.
The situation surrounding Nigeria’s refineries is not just a technical issue; it is a matter of public trust and economic stability. It is time for the government to act decisively and restore hope to the people. The future of Nigeria’s economy depends on it.
