NNPCL Ends Fuel Import

Refinery Rehabilitation Milestone

In a big announcement, the Nigerian National Petroleum Company Limited (NNPCL) said that they will stop importing refined petroleum products by December 2024. They also expect to make N4.5tn in revenue by the end of 2023. The Group Chief Officer of NNPCL, Mele Kyari, shared these plans during a meeting with the Speaker of the House of Representatives, Tajudeen Abbas.

Port Harcourt Refinery Rehabilitation

Kyari discussed the imminent completion of the NNPCL-managed Port Harcourt Refining Company’s rehabilitation, anticipating its conclusion by December this year. This is a big step towards their goal of not importing fuel by the end of 2024. It will make Nigeria a net exporter of petroleum products.

Operational Status of Refineries

During the meeting, Kyari explained the schedule for the refineries to start operating. He said that the Port Harcourt refinery will start in December 2023, followed by the Warri refinery in the first quarter of 2024. The Kaduna refinery is expected to start at the end of 2024. Kyari mentioned that the refineries haven’t been active in the past because of the petroleum subsidy. But now that it’s removed, more private-sector investments are coming in.

Positive Impact on Fuel Prices

Oil marketers confirmed that the Port Harcourt refinery will be ready to start operations in January 2024. This will lead to lower prices for petroleum products, which means people won’t have to spend as much money on fuel imports.

Revenue Projections and Fuel Subsidy Removal

Kyari assured everyone that NNPCL will make N4.5tn in revenue by the end of 2023. He also mentioned that removing the petroleum subsidy will help reduce the high cost of fuel imports and attract more private-sector investments.

Call for Refinery Privatization

House of Representatives Commitment

Speaker Abbas showed support for NNPCL and recognized its important role in Nigeria’s economic development. He also expressed concern about oil theft and its impact on revenue, forex availability, and inflation. The House of Representatives has a special committee on oil theft to address this issue.

As Nigeria moves closer to producing enough petroleum for itself, the successful rehabilitation of refineries and the possibility of privatization show that the country’s oil sector is going through a big transformation.