Oil marketers and energy experts remain divided on whether reactivating Nigeria’s four local refineries can resolve the persistent fuel crisis. Despite government efforts, these refineries—located in Port Harcourt, Kaduna, and Warri—have been non-operational since 2019, leading to heavy reliance on foreign refining. The government has invested $1.5 billion in the Port Harcourt refinery, with operations expected to begin by July.
Rehabilitation efforts are also ongoing for the Kaduna and Warri refineries, with projected operational dates in late 2024 and December 2023, respectively. However, experts warn that restarting these refineries might not solve the fuel crisis due to potential crude oil supply constraints and logistical challenges.
Industry leaders stress the importance of all four refineries being fully operational to mitigate fuel supply issues effectively. They also highlight the need for stringent price regulations to prevent artificial fuel scarcity and price hikes. Additionally, concerns about long-term crude oil agreements pose challenges to meeting domestic fuel demands, prompting calls for increased investment in oil exploration and production.