The Nigeria Extractive Industries Transparency Initiative (NEITI) has congratulated the Nigerian National Petroleum Company Limited (NNPCL) for successfully completing the first phase of the Port Harcourt Refinery rehabilitation project and for the gradual resumption of operations at the Warri Refinery. NEITI, in a statement, hailed these achievements as significant progress in reducing Nigeria’s reliance on imported petroleum products. The agency noted that the successful operation of these refineries is a major step toward achieving energy self-sufficiency and promoting economic sustainability in the country.
NEITI further emphasized that by curbing the high costs associated with fuel imports, this development will positively impact Nigeria’s foreign exchange reserves and stimulate growth in key sectors of the economy. The revitalization of the Port Harcourt and Warri refineries is expected to enhance energy security, create jobs, boost local industries, and free up critical financial resources that can be redirected toward vital national priorities such as healthcare, education, and infrastructure.
The agency also referred to its recent Oil and Gas Industry Reports for 2023, which revealed that between 2006 and 2023, Nigeria spent a total of N15.87 trillion on fuel subsidy under the price differential scheme, with 2022 marking the highest expenditure at N4.714 trillion. It also noted a decline in fuel imports from 23.54 billion liters in 2022 to 20.28 billion liters in 2023, attributed to the removal of the fuel subsidy.
NEITI expressed optimism that with the ongoing refinery rehabilitation, the savings from fuel subsidy payments could be directed toward national development and poverty reduction. It urged the NNPCL to speed up the second phase of the Port Harcourt Refinery project and the ongoing rehabilitation of the Kaduna refinery. The agency also praised the NNPCL leadership for their commitment and determination in executing these complex projects. As a key stakeholder in Nigeria’s energy sector, NEITI reiterated its commitment to supporting NNPCL’s efforts and collaborating to ensure the long-term success of these projects for Nigeria’s energy security.