By Adedapo Adesanya
The $19.5 billion refinery, which was officially inaugurated by former President Muhammadu Buhari two weeks before the end of his administration in May, has been touted to increase its production in phases, beginning with 350,000 – 370,000 barrels per day of diesel and jet fuel.
However, the plant will not rely on Nigerian crude from the Nigerian National Petroleum Company (NNPC) Limited as it will consider other sources, including the US and Saudi Arabia as well as Russian crude.
The refinery will also be able to process most African crudes as well as Middle Eastern Arab Light and even US light-tight oil.
At its full planned capacity of 650,000 barrels per day, the refinery would make Nigeria self-sufficient in fuels and leave plenty more for export.
Due to a lack of refining capacity, Nigeria, which is Africa’s crude producer, imports all its refined products like petrol, diesel, and kerosene, among others. This move has had a ripple effect on Nigeria, especially in the area of foreign exchange.
Despite the promises, analysts are sceptical that the refinery will be able to meet its target. According to top consultancy firm, S&P Global analysts predict the refinery will not hit full operating capacity until mid-2025, according to a note, with further delays still possible.
Modupe Gbadeyanka