There are expectations that Nigeria will soon sort out its crude oil challenges as Port Harcourt refinery begins processing today.
The Chief Corporate Communications Officer of the Nigerian National Petroleum Company Limited (NNPCL) Femi Soneye confirmed in a statement that the oil refinery has finally commenced processing of crude oil in what would be a major boost for Nigeria’s local refining capacity.
Soneye said “Today marks a monumental achievement for Nigeria as the Port Harcourt Refinery officially commences crude oil processing. This groundbreaking milestone signifies a new era of energy independence and economic growth for our nation,”
He added that truck loading will commence fully today while noting that the NNPCL is also working on restoring the moribund Warri Refinery back to its operational capacity.
The commencement of crude oil processing comes after series of delays and missed deadlines. It comes a few hours after the government announced plans to privatise both refineries after being non operational for over 40 years.
Despite being one of the largest producers of crude oil, Nigeria has for a long time been reliant on importation of refined fuel due to a lack of local refining facility. Nigeria exchanges crude worth billions of dollars for petrol while also adopting a subsidy regime to make the product cheap for its domestic market.
The importation and resultant subsidies put a huge strain on the foreign exchange market and often led to price volatility and supply challenges. In addition, the removal of subsidy by the President put the domestic price of fuel within the dictates of the forces of demand and supply. This raised in part the cost of transport and food commodities across Nigeria.
With the commencement of operations at Port Harcourt Refinery and the privately owned Dangote facility, Nigerians will anticipate a reduction in the pump price and a stable supply chain.
