Minister Lokpobiri Raises Concerns Over Crude Oil Supply for Nigeria’s Refineries
During the 2024 sector retreat for the Ministry of State Petroleum Resources in Abuja, Minister Heineken Lokpobiri expressed concerns about the availability of crude oil for Nigeria’s refineries. With the recent inauguration of the Dangote Petrochemical Refinery, Port Harcourt Refinery, Warri Refinery, Kaduna refinery, and modular refineries, Lokpobiri fears that there may not be enough local crude oil supply to meet the production needs of these facilities.
The theme of the retreat, ‘Building Synergy for Enhanced Development in the Oil and Gas Sector,’ highlighted the importance of ramping up production to increase revenue and meet obligations in the mid-stream and upstream sectors. President Bola Ahmed Tinubu had set targets and mandates for the ministry during a previous ministerial retreat in November 2023, emphasizing the need for strategic planning and collaboration.
Lokpobiri emphasized the potential embarrassment of having fully operational refineries without an adequate supply of feedstocks. He first raised this issue in November 2023, pointing out the importance of securing a reliable source of crude oil to sustain the operations of the refineries.
As Nigeria continues to invest in its oil and gas sector, ensuring a steady supply of crude oil for domestic refineries remains a critical challenge. The success of these refineries hinges on the availability of feedstocks, highlighting the need for strategic planning and coordination within the industry. Minister Lokpobiri’s concerns underscore the importance of addressing supply chain issues to maximize the potential of Nigeria’s refining capacity.
