- Warri refinery resumes operations after eight years, running at 60% capacity, with one of three units reactivated.
- Rehabilitating the Warri, Kaduna, and Port Harcourt refineries will help the government reduce fuel imports and boost local refining capacity.
- Industry experts suggest privatising refineries to improve management and ensure an efficient fuel supply.
The Warri refinery in Nigeria’s Delta State has resumed operations after eight years of inactivity. This move marks a key step in the government’s efforts to rebuild the country’s petroleum infrastructure. Petroleum marketers began sourcing diesel and kerosene as the refinery restarted on Sunday, January 5.
The refinery’s nominal capacity is 125,000 barrels of crude oil per day, but it now runs at 60% capacity. Bayo Onanuga, the president’s special adviser on information, confirmed the reactivation of only one of the three refining units.
The government plans to rehabilitate local oil production, including the Kaduna and Port Harcourt refineries. Nigeria has long relied on imported fuel to meet domestic demand. By reviving refineries like Warri and Port Harcourt, the government seeks to reduce this reliance and address rising fuel demand.
Through this restart, the government aims to reduce costs tied to fuel imports and transportation. Meeting the nation’s fuel needs more efficiently forms a key part of this strategy. Still undergoing rehabilitation, the Kaduna refinery will soon join Warri and Port Harcourt in boosting the country’s refining capacity.
However, challenges persist. Restarting refineries does not ensure efficient management, and concerns about continuous fuel supply and mismanagement continue to raise issues. The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) suggests privatising the refineries for more sustainable solutions. They believe private management would improve operations and ensure better service delivery.
Nigeria’s refining industry has long struggled with inefficiency, rising demand, and volatile fuel prices. Many experts support privatisation to resolve these challenges and strengthen management.
Although restarting the Warri refinery represents a significant step forward, the government still faces issues related to fuel distribution. Meeting the growing domestic demand requires effective management of these refineries to ensure stable fuel prices.
The government’s broader energy strategy focuses on rehabilitating the country’s refineries. By restoring them to full capacity, Nigeria aims to reduce dependency on fuel imports, lower costs, and ensure a stable energy supply.
As the government works to restore its refineries, it also looks to strengthen its role in refining its oil resources. The ultimate goal is to achieve energy security and reduce fuel imports, lowering national fuel costs.
Ensuring the successful management of these refineries remains critical. Strong operational frameworks and transparent management practices will help avoid the inefficiencies that previously plagued these facilities.
By reviving the Warri refinery and other key plants, Nigeria is moving closer to achieving energy independence. However, maintaining this progress requires continued focus on efficient management and transparency.