Nigeria’s Refinery Landscape: Here Is The Operational And Dormant Facilities

Nigeria’s Refinery Landscape: Here Is The Operational And Dormant Facilities

In recent weeks, the inauguration of the $18.5 billion Dangote Refinery and Petrochemical Company marked a pivotal moment in Nigeria’s oil refining sector. With this landmark achievement, hopes surged for a potential renaissance in the country’s refining industry, long plagued by inefficiencies and underutilization.

Functional Refinery:

1. Dangote Refinery: Positioned as Africa’s largest refinery, the Dangote facility commenced production in January 2024, signaling a significant leap forward for Nigeria’s refining capabilities. With an estimated annual foreign exchange savings of $25 billion to $30 billion, the Dangote Refinery stands as a beacon of progress amidst a historically stagnant sector.

Non-functional Refineries:

1. Kaduna Refining and Petrochemical Company (KPRC): Commissioned in 1980 with a capacity expansion over the years, the Kaduna refinery has remained dormant, underscoring the challenges hindering Nigeria’s refining infrastructure.
2. Port Harcourt Refining Company (PHRC): Comprising both old and new refineries, the PHRC has struggled to produce petroleum products despite its establishment in 1965. With capacities of 60,000 bpd and 150,000 bpd respectively, both facilities have languished in non-operation for a decade.
3. Warri Refining and Petrochemical Company Limited: Commissioned in 1978 with an initial capacity of 125,000 bpd, the Warri Refinery has ceased production, exemplifying the systemic issues plaguing Nigeria’s refining landscape.
4. Azikel Refinery: Spearheaded by the Azikel Group, the Azikel Refinery aims to address Nigeria’s burgeoning oil demand. However, the project, with a projected capacity of 12,000 bpd, remains under construction in Yenagoa, Bayelsa State.
5. Ogbele Refinery: Operating as a modular refinery in Rivers State, the Ogbele Refinery, with a capacity of 1,000 bpd, represents a modest yet underutilized component of Nigeria’s refining infrastructure.
6. Waltersmith Refinery: Situated in Imo State, the Waltersmith Refinery commenced operations in November 2020, initiating phase one development with an initial capacity of 5,000 bpd, signaling potential for expansion and growth in Nigeria’s refining sector.

As Nigeria navigates its refining landscape, the operationalization of the Dangote Refinery offers a glimmer of hope for revitalizing the sector, catalyzing economic growth, and fostering energy self-sufficiency. However, addressing the challenges facing non-functional refineries remains paramount to unlocking the full potential of Nigeria’s oil refining industry