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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?
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.
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.”
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.
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.”
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
News
INEC set to publish details of 2027 Presidential, National Assembly candidates on August 1
The Independent National Electoral Commission (INEC) will on Saturday, August 1, 2026, publish the particulars of all presidential and National Assembly candidates contesting the 2027 general election for public inspection at its offices across the country.
The publication of the candidates’ details, contained in Form EC9, is in compliance with Section 29(3) of the Electoral Act, 2026, which requires the commission to make the personal particulars of nominated candidates available for public scrutiny within 21 days of receiving them.
Political parties concluded the online submission of the names, personal particulars and other required documents for their presidential and National Assembly candidates on Tuesday, July 14, 2026, after INEC granted a 72-hour extension to the original deadline. ExecutiveBranch
Under the commission’s revised timetable, nominations for presidential and National Assembly candidates were initially scheduled to be submitted between June 27 and July 11, 2026.
Section 29(1) of the Electoral Act, 2026, requires political parties to submit Forms EC9, EC9A, EC9B, EC9C, EC9D and EC9E, containing the names and personal particulars of their nominated presidential and National Assembly candidates, not later than 120 days before the election.
Speaking on whether the 72-hour extension would affect the publication date, INEC Deputy Director of Publicity, Wilfred Osilama Ifogah, said he did not expect any change, although he stressed that he was expressing a personal opinion rather than the commission’s official position.
“I doubt. It might not necessarily affect it. It’s just for the Commission to put the information together and submit it. This is my opinion. I’m not talking officially. When it gets to the time, you will see whether the Commission will publish it or not,” he said.
Meanwhile, the online submission of nominations for governorship and State Houses of Assembly candidates, which commenced on July 18, will continue until August 8, 2026.
INEC has scheduled August 29, 2026, for the publication of the personal particulars of governorship and State House of Assembly candidates through Form EC9.
The commission had earlier conducted party primaries for all elective positions between April 23 and May 30, 2026.
According to INEC’s election timetable, the presidential and National Assembly elections will hold on January 16, 2027, while the governorship and State Houses of Assembly elections are scheduled for February 6, 2027
News
CSOs, Youth Groups Push for Inclusive NYSC Reform, Convene National Dialogue
By Gloria Ikibah
A coalition of civil society organisations and youth groups has announced plans to convene a national dialogue on proposed reforms to the National Youth Service Corps (NYSC), seeking to ensure that the review process reflects the views of Nigerians before the Federal Government takes a final position.
The initiative, being organised by the Centre for Equity, Justice and Transparency in partnership with the Save Nigeria Movement, is expected to bring together policymakers, academics, former corps members, youth organisations, security agencies and other stakeholders to examine the future of the scheme and recommend practical reforms.
Convened by legal practitioners Sorkaa Tsembelee and Patrick Agbese, the one-day dialogue aims to generate a comprehensive working document that will be presented to the Federal Government as part of ongoing efforts to review the NYSC Act.
In a statement issued on Friday, the organisers said the forum was intended to provide an inclusive platform where stakeholders could contribute meaningfully to the reform process.
The statementread: “The essence of this dialogue is for critical stakeholders to make input into the proposed NYSC reforms before the President’s administration takes final decisions.
“We will have senior academics, former corps members, youth groups and other members of society to dissect the proposed reforms thoroughly.
“It will thereafter catalyse into a working document for the Federal Government. We will invite the CDS, the Army and others. Let everyone look at it and say their own.”
Established in 1973 after the Nigerian Civil War, the NYSC was designed to promote national unity, encourage integration among young graduates and foster national development through compulsory service outside their states of origin. Over the decades, corps members have played significant roles in education, healthcare, agriculture and community development, particularly in underserved communities.
However, growing concerns over the safety and welfare of corps members, inadequate funding, deployment policies and questions surrounding the relevance of some aspects of the programme have fuelled calls for a comprehensive review.
The organisers said the dialogue will assess whether the scheme still aligns with its founding objectives while identifying legislative and policy changes needed to address present-day realities.
They maintained that while reforms were necessary, the NYSC’s central mission of promoting national cohesion should be preserved alongside efforts to strengthen skills development, entrepreneurship and youth empowerment.
“This is not about tearing down an institution that has served Nigeria well; it is about refining it with the collective wisdom of those who have lived the experience and those who study its impact.
“Former corps members carry practical insights that policymakers often miss, and we want those voices at the table.
“Youth groups and civil society must not be spectators while decisions that will shape the next generation of Nigerian graduates are taken. The dialogue creates the space for genuine, structured input”, it added,.
According to the organisers, discussions will focus on critical issues including corps members’ welfare, security, orientation camp facilities, deployment procedures, funding mechanisms and the effectiveness of the Community Development Service (CDS) programme.
They added that academics will provide comparative analyses of national service models in other countries, while security agencies would offer institutional perspectives on improving the protection of corps members, particularly those posted to areas affected by insecurity.
“We cannot discuss NYSC reforms without hearing from those who secure the environment in which corps members serve. The CDS and the Army have institutional knowledge that is indispensable.
“Their perspectives on logistics, security and inter-agency coordination will enrich the final document.
“Senior academicians will help us situate the proposed reforms within the broader context of nation-building. We need evidence-based contributions, not just opinions”, the said.
The organisers said the ultimate goal was to produce practical recommendations capable of informing both legislative and executive action.
They explained that the final report would reflect contributions from former corps members, scholars, security agencies, youth organisations and civil society groups, providing government with workable proposals for strengthening the scheme without compromising its original mandate.
“The working document that emerges from this dialogue must be something the government can work with.
“It should reflect the views of those who have served, those who teach, those who protect, and those who advocate.
“Anything less would be a missed opportunity. We are calling on all stakeholders to come prepared to engage constructively.
“The future of the NYSC is too important to be decided in isolation. This national dialogue is our contribution to an open, inclusive process”, the statement further read.
News
No plans to increase electricity tariffs – Power Minister assures Nigerians
The Minister of Power, Joseph Tegbe, has declared that President Bola Tinubu’s administration has no intention to jerk up electricity tariffs beyond the current level.
He disclosed this during a media briefing in Abuja on Friday.
According to him, the Tinubu administration’s priorities are improving electricity service delivery, expanding access to electricity, and ensuring that Nigerians pay only for the electricity they consume.
The minister said that, over the last two weeks, the country has consistently generated 5,000 megawatts of electricity.
“We are already witnessing encouraging improvements in electricity generation. Over the course of the last two weeks, we have consistently generated 5,000MW.
“Permit me to address two issues that have generated considerable public discussion. First, there is no policy by this administration to increase electricity tariffs beyond the current level. Our priority is not a tariff increase in the immediate term. Our priority is service improvement, universal metering, and ensuring Nigerians pay only for the electricity they actually consume,” he stated.
He added that the objective of the Federal Government is to provide reliable electricity to homes across the country.
“Our ambition is clear: reliable electricity that powers our homes.”
Tegbe’s comments come amid debate over a fresh electricity tariff hike, fuelled by remarks made by Tinubu’s Special Adviser on Power Infrastructure, Sadiq Wanka.
Nigerian electricity consumers have kicked against the proposed electricity tariff hike.
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