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Fuel Challenge In Nigeria:  Modular refineries to the rescue?

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By Joshua Ocheja

Nigeria is enmeshed in the imbroglio between the Dangote refinery and the Nigerian National Petroleum Corporation Limited (NNPCL). African countries, however, seem to be tapering towards developing capacities to solve their problems. This entails creating an environment that enables indigenous solutions in critical sectors of the economy.

In 2001, former President Olusegun Obasanjo lifted the lid on the operationalisation of manageable-sized petroleum production when he inaugurated the Presidential Committee on Local Content in the Oil and Gas Industry. This was to promote indigenous participation and ownership in the oil and gas sector. The Nigerian National Petroleum Corporation (NNPC) was mandated to drive the policy and set specific targets for the burgeoning sector.

In 2010, the Nigerian Content Development and Monitoring Board (NCDMB) was established with a mission to “promote the development and utilization of in-country capacities for the industrialization of Nigeria through the effective implementation of the Nigerian Content Act.” It is also tasked to maximize the participation of Nigerians in oil and gas activities. The question is: How this could be achieved?

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Enter, the concept of “homestead” modular refineries comes to mind. Modular refineries are not novel. A modular refinery is a simplified refinery requiring significantly less capital investment than traditional full-scale refinery facilities. Nigeria currently has 25 licensed modular refineries.

Five are operational and producing diesel, kerosene, black oil and naphtha. About ten such projects are under various stages of completion, while a handful others have received licenses to establish. At complete optimization, these refineries can process 200,000 barrels of crude daily.

Aradel Refinery in Rivers State was originally “Midas Drilling Fund” when it was first established in 1992, while Excel Exploration and Production Company Ltd in Bayelsa State was incorporated in 2001. Other functional refineries in Nigeria include Waltersmith Petroman Modular Refinery and Petrochemical Company Limited (WRPC) commissioned in November 2020 by former President Muhammadu Buhari; Edo Refinery in Ologbo community abutting Delta State; Duport Refinery also in Edo and Azikel Petroleum Ltd in Bayelsa State.

The modular refinery strategy is hinged on establishing relatively simple-to-operate oil production plants in oil-producing corridors to reduce the nation’s dependence on imported refined petroleum products. It is also a strategy to mitigate product shortages. They serve their immediate catchments to a large extent to reduce often despairing expectations from subsisting centrally distributed sources.

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This brilliant thinking corroborates the position of oil and gas sector experts about modular refineries as an alternative to the persistent poor performance of the nation’s big refineries and the near total reliance on importation for all our refined petroleum needs. 

With petroleum exploration efforts yielding positive results from parts of the country other than the pre-established oil producing hubs around and about the Niger Delta region, modular refineries may yet become a more diverse concept. For the avoidance of doubt, states like Lagos, Anambra and Kogi have been listed along the existing oil producing states, as beneficiaries of the “13% oil derivation fund.”

Moving forward, this might yet be the magic wand needed to turn things around in Nigeria’s petroleum and gas value chain socioeconomy. Understandably, Nigeria is regularly referenced as a country with elastic capacity to accommodate more modular refineries because it reputedly has the second largest “wetlands” in the world, after the Missisipi in the United States.

Indeed a report published by Hawilti, a Pan-African investment research firm, titled “Refineries watch Q4 2022,” “Modular technology solutions are acknowledged to be on the rise in Africa, and especially in Nigeria. They offer investors the opportunity to cobble together a refinery in a little over a year, from foundation stone laying, to the commencement of actual refining.”

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Modular refineries come with ample benefits but require conscientious and sustained support from the government. This has potential to enhance their net contributions to the economy in diverse ways. Among others, they need regular “back patting” to ensure functional efficiency, with the view to enabling them to refine crude oil in line with their installed capacities effectively.

One of the ways this could be achieved is through an increased crude oil supply to the modular refineries and the subsequent payment in naira as against the dollar for crude oil. The results would be tangible. How would this happen? Refining crude oil in modular refineries is more cost-effective.

Modular refineries are mainly situated near the wellhead of oil production, which will require minimal cost. Also, landing costs associated with shipping and other charges would be eliminated. If this doesn’t make sense, what else would? This is my case for modular refineries. We can’t continue to do the same thing and expect different results.

The government must rethink the strategy of modular refineries in Nigeria to support its growth and the attendant benefits accrued to the country. If that doesn’t happen, then the mission of the Nigerian Content Monitoring and Development Board of “promoting the development and utilization of in-country capacities for the industrialization of Nigeria through the effective implementation of the Nigerian Content Act.” would remain a mirage.

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The state must think strategically in this regard. The potentials inherent in a functional modular refinery regime cannot be overemphasized. This much was corroborated in an editorial by Businessday newspaper, where it stated that modular refineries have the potential to grow into massive refining clusters and envisages a situation where at least 10 per cent of Nigeria’s oil production should be refined through modular refineries, with the overarching objective to provide a lower-cost, steady supply of fuels and products on a local level.

This is sublime and the way to go in our quest for sustainable growth and development. Industry experts have identified modular refineries as a viable alternative to the current refining template in Nigeria. This is because they provide excellent economic prospects and are more cost-effective. Modular Refineries have various benefits.

Typically, environments contiguous to production areas experience some heightened activities in the local economy. The risk-fraught practice of hauling petroleum products over long distances which often result in accidents and attendant carnages, will be minimised. Dwellers in the remote locations where the refineries are built will be able to access products more readily at controlled rates. Because the pipeline network of refineries is local, the nuisance of oil pipeline vandalism will be checked.

Being a very large market, Nigeria can sustain the smaller modular refineries side-by-side with the big players in the industry, including the federal government-owned processors. It is indeed instructive that conversations about the need to encourage modular refinery petroleum processing is coming at a time when government is readying its own facilities in Port Harcourt, Warri and Kaduna for production. Most traditions in Africa have their variants of the Yoruba adage which exhorts that “you wash your hands better when you deploy both together.” Elsewhere, there is also the saying that “you cannot clap your hands with one hand.”

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More incentives should be intentionally availed the modular concept by way of growth and development of regular and increased supply of crude oil, as well as for payments for crude oil supplies to be made in local currency, among others. Modular refineries might just be the magic wand we need to rejuvenate our economy.

Joshua Ocheja, a military historian is a doctorate student at the University of Abuja

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Southern Parkway Service Lanes to End Gridlock, Transform Abuja’s Southern Corridor, Tinubu Assures

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President Bola Ahmed Tinubu has assured residents of Abuja that the construction of the two service carriageways of the Southern Parkway will significantly ease traffic congestion, improve connectivity and accelerate development across the southern districts of the Federal Capital Territory (FCT).

Represented by the National Chairman of the All Progressives Congress (APC), Prof. Nentawe Yilwatda, at the official flag-off of the project in Gaduwa District, Abuja, on Tuesday, the President described the initiative as a critical component of his administration’s infrastructure renewal programme and the implementation of the Renewed Hope Agenda.

According to him, “the Southern Parkway remains one of the most strategic corridors in the Abuja Master Plan, linking several districts across the southern axis of the capital city.”

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“The Southern Parkway is a major route of the Southern Development Corridor. It starts from the Inner Southern Expressway in Phase One and terminates at the same corridor in Phase Four. When fully developed, it will enhance vehicular traffic circulation within the southern part of the city and provide vital inter-district connections across the Federal Capital Territory,” he said.

Tinubu noted that while the main carriageway, now known as the Bola Ahmed Tinubu Way, had already been completed and commissioned by the administration, the service lanes were necessary to complete the original vision for the corridor.

“These service carriageways are not a luxury. They are designed to ease access and improve mobility for our people. Residents of Durumi, Gudu, Gaduwa and the mass housing estates in Phase Two face heavy traffic congestion daily. When these service lanes are completed, travel time will reduce, businesses will save money and families will spend less time on the road. That is the dividend of democracy and the Renewed Hope Nigerians can see and feel,” he stated.

The President said the project formed part of a broader infrastructure revolution being pursued by his administration, citing completed and ongoing projects across the FCT, including the Arterial Road N20, now named Professor Wole Soyinka Way, the N16 Interchange linking Jahi and Gwarimpa, and road networks in Kuje, Gwagwalada and Mabushi.

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He commended the Minister of the Federal Capital Territory, Nyesom Wike, for what he described as exceptional leadership and commitment to delivering infrastructure projects.

“Mr. Wike, you have truly earned the name ‘Mr. Projects.’ Since assuming office, you have revived abandoned projects, set clear targets and delivered them in record time. You have brought discipline, vision and political will to the administration of the FCT. Nigerians are seeing the transformation and feeling its impact,” he said.

Tinubu also lauded the Minister of State for FCT, Dr. Mariya Mahmoud, and the entire FCT Administration for maintaining quality standards and ensuring effective project supervision.

Addressing residents of affected communities, the President appealed for patience during the construction period, acknowledging that diversions, traffic delays and temporary inconveniences would accompany the works.

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“To the contractor, CGC Nigeria Limited, we expect speed but we demand quality. Employ our youths, train our artisans and ensure this project becomes a source of jobs and skills acquisition for Nigerians,” he added.

Earlier, FCT Minister Nyesom , Barr. Wike dismissed concerns that infrastructure development in the territory could slow down because of the approaching election season, insisting that the administration remained focused on completing ongoing projects.

“Today is our 10th day of commissioning projects, but some people have asked whether projects will now be abandoned because elections are approaching. The answer is no. Elections or no elections, we must continue implementing the directive of Mr. President to transform the Federal Capital Territory,” Wike said.

The minister expressed confidence that Abuja’s landscape would be significantly transformed before the end of Tinubu’s first term in office.

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“By the time Mr. President finishes his first tenure on May 29, 2027, before he is sworn in for a second tenure, the landscape of Abuja would have entirely changed, by the grace of God,” he declared.

Wike disclosed that he had personally engaged the management of CGC Nigeria Limited on the project timeline and received assurances that the contractor would work round the clock to deliver the project, provided government fulfilled its funding obligations.

“I want this road commissioned before we go into the elections in January 2027. I assure CGC Nigeria Limited that the FCT Administration will not fail in its obligation to pay for the work done. We have confidence in your capacity because this is not the first challenging project you have successfully delivered,” he said.

The minister also issued a stern warning against illegal developments and land grabbing along the project corridor, directing officials of the Development Control Department and Lands Department to identify and remove structures erected on lands not legally allocated.

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“Those who have forged documents and encroached on government land should know that it will not work. Any illegal structure along the corridor will be removed. We must protect the integrity of the Abuja Master Plan,” he warned.

In his technical presentation, Acting Executive Secretary of the Federal Capital Development Authority (FCDA), Engr. Richard Yunana Dauda, explained that the contract for the construction of the two service carriageways was awarded to CGC Nigeria Limited in May 2026 and that the contractor had already mobilised to site.

He said the project covers approximately three kilometres of dual service roads, construction of two river bridges, drainage facilities, culverts and street lighting infrastructure.

According to Dauda, the Southern Parkway serves as the vehicular spine of the Southern Development Corridor and will provide seamless inter-district connectivity from the Central Area to Phase Four districts of the city.

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“When completed, the project will significantly reduce the heavy traffic congestion currently experienced on roads such as Shehu Yar’Adua Way, Oladipo Diya Way and other connecting routes serving Durumi, Gudu, Gaduwa and Duboyi districts,” he said.

Delivering the vote of thanks, Acting Head of Service of the FCT Administration, Mrs. Nancy Sabanti Nathan, expressed appreciation to President Tinubu for approving the project and to stakeholders whose support made the initiative possible.

She described the project as a critical intervention that would ease traffic congestion, improve transportation efficiency and stimulate economic activities in the affected districts.

Nathan also urged the contractor to maintain the highest standards of quality and safety while adhering strictly to the agreed delivery timelines.

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The Southern Parkway service carriageways project is expected to further open up the southern development corridor of Abuja, improve access to emerging residential districts and strengthen the capital city’s transportation infrastructure as part of the Federal Government’s urban renewal drive.

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Teenage girl allegedly stabbed parents to de@th, stabbed family dog, sent crime scene photos to friends

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A 15-year-old girl from Groningen in the Netherlands was arrested after her parents, Johan and Mathilda, both 53, were found f@tally stabbed last Thursday, June 18, Dutch outlet Algemeen Dagblad reported.

The family’s pet golden retriever also suffered stab wounds in the rampage, the Sun reported.

The dog’s condition is unclear.

The girl took images of her slain parents and then shared the disturbing photos with her friends on WhatsApp after the bloody attack, the Telegraaf reported.

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“You could see both of her parents lying on the ground with their eyes open. Her father was lying on the floor, and her mother was on the bed. There was blood visible and a knife,” one student told the outlet in Dutch.

Local police declined to comment further on the images, but encouraged people to never distribute such images online and report them to the police, the reports said.

The girl reportedly struggled with her identity and often pretended to be a dog, crawling around and barking on all fours with other friends in school corridors.

“She wore a tail, dog ears, and gloves,” another classmate told the outlet. “And sometimes she would make barking sounds.”

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Johan and Mathilda’s relatives said in a statement obtained by Algemeen Dagblad that they “can hardly comprehend” the murd£rs.

‘We hope that everyone understands that we are deeply affected by the tragic events surrounding the passing of Johan and Mathilda from Meerstad,” family and friends said in a statement through an aid organization.

“But the support and sympathy we have received from many do us good and are heartwarming.”

An investigation into the slayings remains ongoing.

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OGTV broadcaster: Police recover stolen Lexus RX300 as CP vows “no stone unturned” in murder probe

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Ogun State Police Command says it has recovered the Lexus RX300 stolen from the home of slain ex-OGTV broadcaster Mrs Kitan Oyesiku and her security guard in Iyana Agodo Village, Owode-Egba.

The recovery happened during night operations, the command confirmed Monday.

—CP walks the scene himself—

Commissioner of Police Bode Ojajuni visited the crime scene for an on-the-spot assessment. He inspected the premises and got briefings from detectives handling the case.

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“CP Ojajuni reiterated the Command’s resolve to leave no stone unturned in unraveling the circumstances surrounding the incident and ensuring that those responsible are identified, apprehended, and brought to justice,” Police PPRO Oluseyi Babaseyi said in a statement.

The visit, according to police, was to evaluate progress in the investigation into the double murder that has rattled the Owode-Egba community.

—What happened that night—

PUNCH Online had reported that a resident raised the alarm over suspicious movements around Oyesiku’s residence. When operatives arrived, they found signs of forced entry.

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Inside, the security guard was found dead at his post. Oyesiku’s body was later discovered inside the apartment. Her Lexus RX300 was missing.

Police now say the vehicle has been secured and will serve as key evidence. “It is worthy of note that the vehicle earlier reported missing from the residence, a Lexus RX300, has been recovered by police operatives during the night hours,” Babaseyi confirmed.

—“Intensive investigation ongoing”–

Ojajuni commiserated with Oyesiku’s family and assured Ogun residents that “all available resources are being deployed to track down the perpetrators.”

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For now, no arrests have been announced. But with the car recovered and the CP personally monitoring the case, police say they’re closing in.

Oyesiku, a retired broadcaster with Ogun State Television, was remembered by colleagues as a calm voice on air. Her death, alongside her guard’s, has renewed calls for better security for elderly residents living alone in semi-urban areas. [The Punch report rewritten]

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