Nigeria’s quest for energy self-sufficiency has gained momentum as the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) signed an agreement with three oil companies to establish a 50,000 barrels-per-day refinery in Akwa Ibom State.
The agreement signed on Wednesday involves PETROAN partnering with Claridge Petroleum Company Ltd, Oasis Petrochemical Products Limited and Afrintech.
The initiative aims to provide Nigerians with affordable petroleum products while reducing the nation’s dependence on fuel imports.
The National President of PETROAN, Billy Gillis-Harry, disclosed that the association initially planned to import cheaper fuel but opted instead to establish a refinery after stakeholders reached a consensus to end fuel importation.
“The deal is that we have requested for them to not import for us but to set up a refinery in Nigeria, and they have agreed to that. So within the period that the process will be, they can be importing only diesel for us and maybe base oil; but PMS, we must have to do that locally,” he explained.
Gillis-Harry noted that the proposed refinery would prioritize affordability for consumers. “We are using the benchmark of pricing for affordability as a basis. And that is giving us a guarantee of what is a very sweet deal for Nigerians,” he added.
The companies involved have agreed to fund the project,while PETROAN will serve as the primary off-taker for the refinery’s output.
“We have agreed to set up 50,000 barrels for the refinery in Akwa Ibom. We are working on it. We have not completed the transactions. It may take another week or two weeks, but we are continuing the meeting and we’ll see how this goes. PETROAN will fully be in control of the products that come out of it,” he stated.
Addressing concerns about the financial and regulatory requirements for the refinery, Gillis-Harry expressed confidence in the process. He assured that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) poses no barriers to refinery licensing, provided the necessary qualifications are met.
“We have no problem with the NMDPRA. NMDPRA does not give any bottleneck of approval. When you come, you show your qualifications. If you meet the right conditions, NMDPRA will give you a licence,” he said.
This development comes as Nigeria continues to grapple with underinvestment and a reliance on fuel imports in its energy sector.
With the Dangote refinery and several modular refineries already contributing to local production, the planned refinery in Akwa Ibom is expected to further strengthen the nation’s refining capacity and reduce the burden of imports.
