By Benson Daniel
Energy analysts have renewed calls for the urgent rehabilitation of Nigeria’s state-owned refineries, arguing that restoring the facilities to full operational capacity is critical to reducing the country’s dependence on imported petroleum products and strengthening energy security.
The experts said Nigeria continues to spend billions of naira annually on fuel imports despite being one of Africa’s leading crude oil producers. They noted that reviving the country’s refineries would significantly cut import costs, conserve foreign exchange, create jobs, and boost the nation’s industrial capacity.
According to the analysts, improving domestic refining capacity would also help stabilize the supply of petroleum products, reduce exposure to fluctuations in the global oil market, and lessen the impact of exchange rate volatility on fuel prices.
They stressed that while private investments in refining, including the emergence of new large-scale refineries, have improved local refining prospects, the government-owned facilities remain strategic national assets that should be rehabilitated and efficiently managed to complement private sector capacity.
The analysts observed that years of poor maintenance, operational inefficiencies, and delayed turnaround maintenance have left the refineries operating far below their installed capacities. They argued that restoring the plants would improve competition in the downstream petroleum sector and enhance Nigeria’s energy resilience.
They also called for greater transparency and accountability in refinery rehabilitation projects to ensure that public funds allocated for repairs deliver measurable results. In addition, they urged the government to implement sustainable management structures capable of maintaining the facilities after rehabilitation.
Industry stakeholders further emphasized the need to strengthen crude oil supply arrangements for domestic refineries, saying consistent feedstock availability is essential for uninterrupted production and long-term operational efficiency.
The experts maintained that increasing local refining capacity would not only reduce dependence on imported fuel but also stimulate investment in petrochemicals, logistics, transportation, and other industries linked to the oil and gas value chain.
They added that a functional refining sector would support economic diversification by encouraging value addition within Nigeria instead of exporting crude oil and importing refined products at higher costs.
As efforts continue to reform the country’s petroleum industry, the analysts expressed optimism that timely rehabilitation of state-owned refineries, alongside continued private sector investment, would enhance fuel security, strengthen the economy, and reduce the pressure on foreign exchange reserves.
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