FENRAD hails Warri refinery’s revamp, calls for modular refineries’ licensing

Stanley Ihedigbo

Foundation for Environmental Rights, Advocacy and Development (FENRAD) has commended the Nigerian National Petroleum Company Limited (NNPCL) for the successful revamp of the Warri Refinery.

The refinery’s 125,000-barrel-per-day capacity is expected to enhance energy security and transition in Nigeria.

FENRAD Executive Director Comrade Nelson Nnanna Nwafor praised the federal government’s initiative, stating that it would put an end to the backlog of broken promises of the past.

He also believed that the refinery’s operation would plug financial leakages and increase revenue for the federal government.

The Foundation urged the NNPCL to accelerate repair works at the Warri facility to ramp up production.

The Foundation believed that the development would put to an end the backlog of broken promises of the past while the financial leakage, known as Turn Around Maintenance (TAM), could be plugged, and more money could go to the coffers of the federal government.

The Foundation also calls on the NNPCL which manages the refineries to accelerate repair works in the Warri facility to help it ramp up production as it expresses belief that with the Port Harcourt refinery on stream (whether blending or refining) and the coming of the Warri facility (set for completion/inauguration before the first quarter of 2025, Q1 2025) there is hope that price of petroleum products will slump creating room for affordability and accessibility.

Having stated this, the Foundation appealed to the regulatory agencies in the industry to ensure that the Kaduna refinery is restored to full maximum capacity to address discrepancies in the price of products, as only a fair price regime can ensure accessibility.

“With more private refineries like BUA expected to come on stream soon, Nigeria will overcome problems like scarcity, price instability, and the like while enjoying the numerous benefits a competitive market guarantees,” he advised.

Stories are indeed making the rounds on various media platforms that the facility is only discharging kerosene (DPK) and diesel (AGO) from the lines for now, but that, to the Foundation, is not bad as the DPK serves a dual purpose, including the aviation industry.

The foundation calls on the Nigerian Content Development and Monitoring Board to issue licenses to local refiners to enable them to join the mainstream refining sector.

“This will unlock the economic potential of the Nigerian state and, at the same time, create a perfectly competitive market. This, the Foundation believes, will address bunkering and vandalism, as most of those sabotaging the sector today only need to be given a template or standard and then fully integrated into the sector. Local players need to exist side by side with international players.

FENRAD emphasized the need for licensing modular refineries to unlock Nigeria’s economic potential, create a competitive market, and address bunkering and vandalism.

The Foundation cited the Presidential Artisanal Gold Mining Development Initiative (PAGMDI) as a successful example of inclusive sectoral development.

” For example, during his presidency, Mohammadu Buhari issued licences to artisanal gold miners in Zamfara and elsewhere in the North, a presidential initiative known as Presidential Artisanal Gold Mining Development Initiative (PAGMDI). An inclusive sector will address over half of the problems encountered in the sector and create a win-win for the people and government. This is what will make the product available and affordable”, he stated.