International financiers wey bin set to fund the construction of about 20 modular refineries for Nigeria don hold back their financial support, and them talk say na because dem no dey sure say crude oil go dey available for the refineries once dem don finish am.
This matter don big setback for Nigeria as dem dey try increase their local refining capacity and reduce how dem dey depend on imported refined petroleum products.
The main wahala be say crude oil producers for Nigeria, wey be mostly international oil companies (IOCs), no fit give guarantee say dem go dey supply crude oil to the modular refineries. Because of this, the financiers dey fear to release the money wey dem suppose use fund the projects.
Even though Nigeria dey produce pass any other country for Africa, dem dey export most of their crude oil to make foreign exchange, and this one dey make the local refiners no fit get the crude oil wey dem need. The problem still dey because local refiners dey find am hard to get dollars wey dem fit use buy crude oil.
Right now, Nigeria get 25 licensed modular refineries. Out of these, only five dey work and dey produce things like diesel, kerosene, black oil, and naphtha. Some others dey different stages of completion, while some don get license to start but dem never start construction.
Operators of these modular refineries don talk say dem dey frustrated because apart from the five wey dey work, others dey suffer mostly because dem no get crude oil. This problem don cause the financiers to hold back the money, and dem dey wait for the Federal Government to make sure say the IOCs promise to supply crude oil to the refineries.
One operator of one modular refinery wey no want make him name dey used talk say, “The lack of guarantee say crude oil go dey available na serious bottleneck. Without assurance say we go get crude oil, e no possible to get the money wey we need to complete the projects.”
The Federal Government now dey under pressure to enter the matter and make sure say the IOCs give the assurance wey dem need. This one fit involve negotiations and change of policy to make sure say dem dey prioritize supply of crude oil to local refineries over exports.
If dem fit achieve this, e go help to unlock the money wey dem don hold back and e go also increase Nigeria’s refining capacity, reduce how dem dey depend on imported refined products, and create jobs.
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