Analysts Seek Urgent Rehabilitation Of State-owned Refineries to Cut Fuel Imports

Energy sector analysts have urged the urgent rehabilitation of state‑owned refineries to curb soaring fuel imports and ease high petrol prices, even as Nigeria recorded rising crude output due to improved operational stability, reduced pipeline vandalism and more efficient crude evacuation.

Industry analysts told CCTV+ that reviving domestic refining capacity is key to reducing import dependence and stabilising prices.

“One major challenge we have in Nigeria is the fact that our refineries are not functional,” an industry source cited by CCTV+ said. “If the government can deploy more resources into this sector and ensure that all our refineries are functional and working adequately, I think this is going to be one of the major ways we can curtail the price or the hike in price of petroleum products.”

The federal government said it is working to address the refinery gap and has entered partnerships with Chinese firms to revive state-owned refineries. Under the agreement, the refineries in Kaduna, Warri and Port Harcourt are to be restored to at least 80 per cent operational capacity by 2029. Officials estimate that reaching such capacity could cut the country’s annual imports of refined petroleum products by more than half.

The analysts cautioned, however, that restoring refineries, improving governance of oil revenues, and ensuring transparency in how additional funds are allocated will be critical to translating higher crude output into broader economic benefits for Nigerians.

Data from the Nigerian Upstream Petroleum Regulatory Agency (NUPRC) showed that crude oil production rose driven by improved operational stability, reduced pipeline vandalism and more efficient crude evacuation.

The agency’s assessment comes as the Minister of State for Petroleum projected that production could reach about 3 million barrels per day within four years.

Officials and industry observers said the boost in output could generate substantial additional revenue — but warned that gains must be channelled into productive uses rather than dissipated.

“This increase in oil revenue and all of those things, and you know production that has actually happened, it is meant to actually bring about well-creation to the country,” an analyst told CCTV+, urging the federal government to adopt policies to direct inflows toward national development priorities.

Despite rising crude production, Nigerians continue to face surging prices for refined petroleum products. The country exports most of its crude and imports refined by-products such as petrol, kerosene and cooking gas for domestic use — a structural mismatch experts say is at the root of local price pressures.

Data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) show petrol imports jumped to about 18 million litres in June from 5.9 million litres in May — an increase of more than 12 million litres, or over 200 per cent.