Refineries’ Operationalisation To Enhance Energy Self-sufficiency, Economic Stability – NEITI

The Nigeria Extractive Industries Transparency Initiative (NEITI) has acknowledged the rehabilitation of the nation’s refineries, saying, the operationalisation of these refineries is a monumental step towards achieving energy self-sufficiency and fostering economic sustainability.

While applauding the Nigerian National Petroleum Company Limited (NNPC) on the successful completion of the first phase of the Port Harcourt Refinery rehabilitation project and the gradual resumption of operations at the Warri Refinery, it noted these accomplishments represent significant strides towards addressing Nigeria’s long-standing dependence on imported petroleum products.

”By reducing the staggering costs associated with fuel importation, this milestone will positively impact Nigeria’s foreign exchange reserves and create a ripple effect across key sectors of the economy

“NEITI acknowledges that the revitalization of the Port Harcourt and Warri Refineries has the potential to enhance energy security, create jobs, stimulate local industries, and free up critical funds that can be redirected towards national priorities like health, education, and infrastructure,” it said.

The NEITI had, through its Industry Reports for the Oil and Gas 2023 released recently, disclosed that, between 2006-2023 (in 18 years), a total of N15.87 trillion has been expended as under recovery through price differentials (Subsidy) with 2022 recording the highest sum of N4.714 trillion.

RELATED

Despite 50% Tariff Hike, Internet Usage Hits 1m TB In May

1 hour ago

Interim Dividend: Stocks Gain N377bn In 1 Week

1 hour ago

It said, 2022 also recorded the highest importation of PMS put at 23.54 billion litres, while 2017 recorded the lowest import volumes of 16.88 billion litres.

Furthermore, between 2022 and 2023, importation volumes declined by 3.25 billion litres from 23.54 billion litres in 2022 to 20.28 billion litres in 2023.

This is attributed to the announcement of the removal of fuel subsidy.

With the current efforts to put the refineries back to work, NEITI expressed delight that the huge payments expended on subsidy will henceforth be available to support national development, ongoing rebuilding of the national infrastructure and poverty reduction.

“We request the NNPC to expedite action on the second phase of the Port Harcourt Refinery and the ongoing rehabilitation of the Kaduna refinery.

This should be followed closely with the restoration of the phase 1 of the Port Harcourt refinery to optimal capacity in the ongoing rehabilitation efforts”, NEITI stated.

It also commended the leadership of the NNPC team for their resilience, dedication, and unwavering determination in executing this complex and challenging task.

As stakeholders in Nigeria’s energy sector, NEITI said that it remains committed to supporting NNPC’s efforts to ensure the long-term success of these projects and to share the achievements with national and global partners, including the Extractive Industries Transparency Initiative (EITI) community.

It expressed readiness to collaborate with NNPC to sustain and expand these gains in the national interest and Nigeria’s energy security.