The Nigerian National Petroleum Company Limited (NNPCL) announced on Thursday its intention to cease the importation of refined petroleum products by December 2024, as the nation’s refineries are anticipated to be fully operational by then.
The company also projected a revenue growth to N4.5 trillion by the end of 2023, with the rehabilitation of the Port Harcourt Refining Company set for completion by December this year.
During a meeting with the Speaker of the House of Representatives, Tajudeen Abbas, the Group Chief Officer of NNPCL, Mele Kyari, disclosed these plans.
The Speaker advocated for the privatization of Nigeria’s refineries during the meeting.
Oil marketers also confirmed on Thursday that the Port Harcourt refinery is poised for operations, with potential commencement in January 2024.
This development is expected to significantly impact the prices of refined petroleum products.
Kyari emphasized Nigeria’s commitment to becoming a net exporter of petroleum products by 2024, with the full operation of all refineries.
He attributed the prolonged inactivity of refineries to the petroleum subsidy, noting that the removal of the subsidy is attracting increased private-sector investments.
The President of the Petroleum Products Retail Outlets Owners Association of Nigeria, Billy Gillis-Harry, affirmed the readiness of the Port Harcourt refinery, stating that operations could commence in January 2024.
Gillis-Harry highlighted that the refinery’s start would lead to a reduction in the prices of refined petroleum products.
The Federal Government had previously announced that the rehabilitation of the Port Harcourt refinery would be completed in December 2023.
The NNPCL assured that the project is progressing as planned, and the refinery is set to begin operations in line with expectations.
Chief Corporate Communications Officer of NNPCL, Olufemi Soneye, confirmed that the Port Harcourt refinery project is proceeding without issues and is scheduled for completion by the end of December 2023.
Oil industry stakeholders expressed optimism that the Port Harcourt refinery’s operations would have a positive impact on fuel supply, contributing to a reduction in both price and quantity issues.
The Independent Petroleum Marketers Association of Nigeria urged NNPCL to ensure the refinery begins operations as targeted, emphasizing the potential economic benefits.
However, industry experts noted that the cost of crude oil remains a significant determinant of refined product prices.
Practicing deregulation, fluctuations in crude oil prices could influence the affordability of refined products, making it crucial for the refinery to start operations as planned to positively impact the economy.