PORT HARCOURT, Nigeria – Nigerian oil marketers are suspending plans to import Premium Motor Spirit, PMS, commonly known as petrol, as they eagerly await the start of domestic production of refined petroleum products.
The decision comes amidst difficulties in securing U.S. dollars required for imports and promises by the Nigerian government that local refineries will be operational by December 2023.
“If I heard the new petroleum minister correctly, he recently said that by December there won’t be a need for importation, which means the refineries will be up and running,” stated Chinedu Okonkwo, the National President of the Independent Petroleum Marketers Association of Nigeria, IPMAN on Saturday, September 9, 2023.
Okonkwo emphasized the game-changing nature of local refining. “Importation is not the way to go. The pressure to get dollars for importation is high. If we follow what the government has said, we should be accessing products locally by December.”
Last month, the Minister of State for Petroleum Resources, Heineken Lokpobiri, confirmed during an inspection tour in Port Harcourt that the city’s refinery would begin operations by the end of the year.
Warri and Kaduna refineries are expected to follow suit in 2024.
“From what we have seen here today, Nigerians will enjoy the full benefits of deregulation,” Lokpobiri said.
Experts predict that the move towards domestic refining will not only alleviate the strain of accessing foreign currencies for import but will also likely result in a decrease in PMS prices.
Furthermore, Okonkwo believes that local refining will create jobs and reduce transportation or logistics costs.
“The jobs that we are giving to other countries who are refining our crude will now be done here in Nigeria,” Okonkwo said. “Transportation costs will be reduced, and availability will now be guaranteed. It’s a welcome development that should be given the desired push.”
However, Okonkwo acknowledged the hardships facing oil marketers and the broader economy.
“Even the rich are now crying. The economic crunch is hitting everyone. But we are optimistic that there will be improvements, particularly when we start refining locally.”
The move towards energy independence comes at a crucial time for Nigeria, a country that has long grappled with paradoxical poverty amidst abundant natural resources.
While the anticipation runs high, the world watches to see if Nigeria can turn a new leaf in its energy sector, offering a beacon of hope for other nations in the region.
