Nigeria’s Refineries Collapse by 92%, Triggering Alarm Bells

Nigeria's Refineries Collapse by 92%, Triggering Alarm Bells

The World Energy 2023 report reveals a staggering 92% decline in Nigeria’s crude oil refining output over the last decade, sounding alarm bells for the nation’s energy sector. In 2012, production stood at 92,000 barrels per day (bpd), but by 2022, it plummeted to a mere 6,000 bpd, indicating a severe drop in refining capacity. This alarming data aligns with findings in the Organization of the Petroleum Exporting Countries’ (OPEC) Annual Statistical Bulletin 2023, which also highlights an 81% decrease in Nigeria’s crude oil refining capacity from 33,000 bpd in 2018 to 6,000 bpd in 2022.

Despite Nigeria owning four government-owned refineries with a combined capacity of about 4.45 million barrels of crude oil daily, the country heavily relies on importing refined petroleum products. Responding to the crisis, the Minister of State for Petroleum, Heineken Lokpobiri, announced plans for the Port Harcourt refinery to begin operations by the year’s end. The Group Chief Executive Officer of the Nigerian National Petroleum Corporation Limited (NNPCL), Mele Kyari, expressed confidence in ending fuel importation by 2024, aiming to restore Nigeria’s self-sufficiency in refined petroleum products. The federal government, led by President Bola Ahmed Tinubu, intensifies efforts to revitalize Nigeria’s refinery operations, seeking to rescue the energy sector from collapse.


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