While 44 refinery licences have been given to private investors, only a few projects, including the one being built by Dangote Industries Limited in Lagos, are underway.
Niger Delta Petroleum Resources Limited is the only company that has been able to establish and run a refinery.
It has a 1,000 barrels-per-day refinery at Ogbelle, Rivers State and it is working to expand the processing capacity to 6,000bpd and later to 11,000bpd.
According to the Department of Petroleum Resources, there are a total of 38 proposed modular refineries with capacity ranging from 5,000 bpd to 30,000bpd, and six conventional plants with a total capacity of 1.35 million bpd.
It said 24 out of the 44 companies were still sourcing funds as of April 2018, some of whose licences to establish had expired, adding that 20 licences were active.
In August, the Nigerian Content Development and Monitoring Board said it was providing equity investment for the establishment of two modular refineries in Imo and Bayelsa states.
It said the 12,000 barrels-per-day modular refinery being constructed by Azikel Petroleum Limited in Bayelsa would come on stream in 2021.
The NCDMB said the 5,000bpd modular refinery being built by Waltersmith Refining and Petrochemical Company Limited in Imo was on track for completion in May 2020.
The National Refineries Special Task Force, which was set up by the Ministry of Petroleum Resources in 2012, said it examined 35 greenfield private refinery licensees/applicants, and only seven were found to have reasonable potential.
The taskforce said it was evident that most of the applicants for a refinery licence did not have the requisite experience and background in petroleum refining and marketing.
It said, “Their technical capability is rather doubtful and their ability to attract the quantum of funds required for refinery projects, running into billions of naira, is questionable.
Source: Punch Newspaper.
