People keep asking why gasoline costs so much in Lagos or why diesel sometimes disappears from the pumps. The short answer: the state of Nigeria’s refineries. Over the past year, a handful of big projects have either stalled or sped up, and each move reshapes what you pay at the pump.
First, the big players. The Dangote Refinery, set to be Africa’s largest single‑site refinery, finally fired up its first units in early 2024. Production has been rising, but the plant still isn’t at full capacity. That means it can’t yet replace the output from older, less efficient refineries that the government still runs.
At the same time, the old Warri and Port Harcourt refineries are in a perpetual repair cycle. Engineers say rust, outdated equipment, and inconsistent power supply keep them from delivering a steady flow of fuel. The government promised a $2 billion overhaul in 2023, but funding hiccups and contractor disputes have pushed the completion date to 2026.
Another project worth watching is the new Kaduna mini‑refinery. It’s supposed to process about 30,000 barrels a day of locally sourced crude, easing pressure on the bigger plants. Construction has hit a snag because the pipeline that will feed it with crude was delayed due to land‑acquisition issues. Until that line is done, the mini‑refinery can only run at half speed.
How do these delays touch everyday life? When refineries can’t meet demand, the government steps in with fuel imports. Importing fuel costs more because you have to pay for shipping, foreign exchange, and extra taxes. Those costs get passed on to drivers and businesses.
In the last six months, the average price of unleaded gasoline in Abuja rose by about 12 %. Diesel saw a similar jump, which hurt transport companies that move goods across the country. If the Dangote plant hits full capacity by 2025, analysts say we could see a 5‑7 % drop in retail fuel prices because it would cut the need for imports.
One practical tip: keep an eye on the National Petroleum Marketing Company (NPMC) announcements. They release weekly updates on fuel allocations to each region. When a state gets a larger share, prices often dip for a few days before climbing again.
In short, the refinery story in Nigeria is a mix of big hopes and slow progress. The Dangote Refinery offers a glimpse of a future where the country can rely on its own oil processing, but until the old plants are fixed and new pipelines are in place, fuel price volatility will likely continue.
Stay tuned to South Vent Daily News for the latest updates, expert analysis, and practical advice on how refinery developments affect your wallet. We’ll break down every new announcement so you don’t have to sift through confusing jargon.
At the 4th PENGASSAN Energy and Labour Summit, President Festus Osifo argued that politics, corruption and mismanagement—not a lack of technical talent—are crippling Nigeria’s state‑run refineries. He highlighted the competence shown by local workers during COVID‑19 and called for stable policies, proper tools and reforms to restore investor confidence.
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