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Nigeria Imports Refined Petroleum Products Worth $28bn Yearly, Says Energy Consultant

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By Derrick Bangura

The cost of importing petroleum products of all kinds into Nigeria has soared to over $28 billion on an annual basis, Blackgold Energy Authorities, an oil and gas consulting and advisory firm, has revealed.

The Principal Consultant, Blackgold, Dr. Oladunni Owo, disclosed this. Monday in Lagos at the ongoing two-day Nigerian Content Midstream/Downstream Oil and Gas Summit, with the theme: “Towards Maximising Potential in the Midstream and Downstream Oil & Gas Sector – A Local Content Perspective.”
This was just as the Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Mr. Simbi Wabote, also disclosed at the event that Nigerian firm, Temile Development Company Limited, would this week sign an agreement with a South Korean shipbuilder, Hyundai Heavy Industries, for the construction of the second Liquefied Petroleum Gas (LPG) vessel under the $120 million contract earlier signed in 2018.

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In her presentation at the summit, on the topic, “Challenges and opportunities in the Nigerian petroleum refining sector”, Owo put Nigeria’s per capita refining at 0.002 barrels per day, describing the situation as embarrassing.

“Nigeria’s total import for petroleum products is about $28 billion per annum. Nigeria is the largest producer of crude in Africa and the third-largest importer of refined products in Africa.

“Nigeria’s per capita refining is about 0.002 barrels per day, that’s very embarrassing,” she stated.

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Owo stated that the country had not done enough in building refining capacity, saying in 2015, about 65 modular refinery licenses were approved by the federal government.

According to her, of those 65, only a few including Waltersmith Refinery and Niger Delta Refinery have commenced production.

She said the refining sector had been tainted with, “uncertainty due to adverse effect of regulator, subsidy, poor maintenance, general operational failure, inconsistencies, supply of feedstock, vandalization, piracy, all sorts, and all kinds.

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“The objective of this is just to bring out the fact that our consumption is high and our import is also very high.”

Meanwhile, after the delivery of the first Liquefied Petroleum Gas (LPG) vessel in 2020, out of a two-vessel-building contract valued at over $120, signed in July 2018 between Nigerian oil and gas company, Temile Development Company Limited and South Korean shipbuilder, Hyundai Heavy Industries, will this week sign agreement for the construction of the second vessel.

Wabote, who disclosed this in his welcome address at the summit, said the agreement signing for the vessel construction between the two companies would be one of the key highlights of the World Gas Conference held this week in South Korea.

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Wabote said that the vessel owned by a local indigenous company would further enhance the supply capability of the LPG across the country.

He explained that the agreement for the first vessel was signed in 2018 and that the vessel was delivered in 2020, noting that the agreement for the second vessel was a sign of self-propelled growth for Nigerian indigenous companies in the midstream and downstream sectors of the oil and gas industry.

“As you may be aware, the World Gas Conference is holding this week in South Korea. One of the key highlights of the event is the signing of the agreement to construct the 2nd LPG Vessel owned by a local indigenous company to further enhance the supply capability of the LPG across the country.

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“Agreement for the first vessel was signed in 2018 and the vessel was delivered in 2020. I am pleased to note that agreement for the second vessel is being executed which is a sign of self-propelled growth for our indigenous companies in the midstream and downstream sectors of the industry”, Wabote stated.

He, however, said the initiatives put in place by the Minister of State for Petroleum Resources, Chief Timipre Sylva, in line with the Decade of Gas declaration of the federal government was the National Gas Expansion Programme (NGEP) with three key elements namely Domestic LPG Expansion, Autogas, and Power Generation.

He said the Domestic LPG Expansion element of the program targeted 20 million homes to increase the country’s LPG penetration currently estimated at a national average of 13 percent.

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He said a glimpse of the LPG value chain in the country presented another plethora of opportunities for which the board had also gone into partnership with some investors to develop different areas of the value chain.

The website maintained that the NCDMB’s touchpoints in the LPG value chain covered inland LPG production, LPG jetties/terminals, storage facilities, inland transportation, cylinders manufacturing, bottling, and retail.

He added that their partnership investments in the gas value-chain included a Partnership with NEDO Gas Processing Company in Kwale, Delta State, for the establishment of 80 million standard cubic feet per day (mmscfd) of gas processing plant and a 30mmscfd Kwale Gas Gathering hub.

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Others, according to him included “partnership with Triansel Gas Limited in Koko, Delta State, for the 5,000MT LPG Storage and Loading Terminal Facility; Partnership with Brass Fertiliser for the development of a 10,000MT/day Methanol Plant at Odiama in Brass

“Partnership with Butane Energy to roll out LPG Bottling Plants and Depots in Abuja and 10 Northern States of Kano, Kaduna, Katsina, Bauchi, Nassarawa, Zamfara, Niger, Plateau, Gombe, and Jigawa states; Partnership with Southfield Petroleum for the establishment of 200MMscfd gas processing plant at Utorogu, Delta State to produce 123,000MTPA of LPG.

“This represents about 10 percent of current LPG demand nationwide which will be produced in-country instead of being imported; Partnership with MOB Integrated Services for the construction of the 500MT Inland LPG terminal which is currently in operation at Dikko, Niger State.

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“The partnership includes the construction of a Cylinder Refurbishment plant, procurement of 80,000bottles of LPG Cylinders, and acquisition of distribution assets consisting of Bridgers, bobtails, and cylinder distribution trucks to enhance LPG penetration across the target catchment areas.”

The executive secretary said the board also had a partnership with Amal Technologies to set up a plant in Abuja for the production of Smart Gas/Smoke Detector Alarm devices that monitors and detects smoke and all types of gas leakages thereby enhancing the safe usage of LPG in our homes.

He expressed delighted that the African Petroleum Producers Organisation (APO) had signed a Memorandum of Understanding (MOU) with the African Export-Import Bank (Afreximbank) to set the ball rolling in addressing the funding challenge in the continent’s oil and gas sector

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Wabote said that based on the board’s 10-year Strategic Roadmap to achieve the 70 percent Nigerian Content target in the Nigerian oil and gas industry by the year 2027, the midstream and downstream sectors of the industry represented key areas to derive and extract value to meet their set target.

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Headlines

NNPC Foundation Trains Over 3,000 Southwest Farmers in Climate-Smart Agriculture

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In a bid to promote food security and sustainable agricultural practices, the NNPC Foundation has successfully trained more than 3,000 farmers in the South-West geopolitical zone on climate-smart and modern farming techniques.

The training, which concluded on Friday in Ikorodu, Lagos, marked the end of the Southwest phase of the foundation’s pilot programme aimed at empowering local farmers and boosting agro-productivity.

Speaking at the closing ceremony, Managing Director of the NNPC Foundation, Mrs. Emmanuella Arukwe, described the initiative as a milestone in the lives of thousands of farmers.

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“Today marks the formal conclusion of the first phase of a national journey that speaks to resilience, food security, and economic empowerment,” Arukwe said.
“What began as a bold decision to support small holder farmers has translated into tangible action across three geopolitical zones (South-East, South-South, and South-West) in Southern Nigeria.”

She disclosed that a total of 3,860 vulnerable farmers across 10 locations in the three regions were trained in sustainable farming practices that improve productivity and market access.

“This achievement is not just a number, but a milestone in the lives of real people and real communities. We were able to strengthen farmers’ capacity to adapt to climate change,” she added.
“Through the training, we were able to improve access to markets, promote inclusive agriculture and especially gender representation. We also trained them on enhancing food production through sustainable techniques.”

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Arukwe noted that the programme would now move to the North-West, North-Central, and North-East zones as part of its next phase, saying the foundation is committed to supporting livelihoods nationwide.

“This is only Phase One. We will now turn our focus to the North-West, North-Central, and North-East zones. What we have achieved in the South will inform and strengthen our next steps,” she said.
“The NNPC Foundation will continue this mission, to support livelihoods, build resilience, and empower the hands that feed our families and beyond.
We have decided that most times you get a lot of requests from people asking us to give them palliatives and all kinds of things to help them.
But we think it is much better to teach people to fish than just give them fish so they can continue,” Arukwe explained.

Chairman of Ikorodu Local Government, Mr. Wasiu Adesina, while commending the initiative, urged the beneficiaries to apply the knowledge gained to boost productivity and profitability.

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“As we all know, agriculture is the bedrock of any nation. Without agriculture, there will not be a nation, because there will be no food to eat,” Adesina stated.
“It is the farmers that produce our food, and it is important that we train our farmers with new techniques in agriculture, and that is exactly what the NNPC Foundation is doing.

“To the farmers, you have to take advantage of this training and face the farming squarely. In some great countries like the United States and the United Kingdom, farmers are the most richest people in those countries.

“This is because they make a lot of money from farming. We need to inculcate that habit in Nigeria and develop ideas in farming. Even after my tenure, I am going back to farming, so, maybe I will ask the NNPC Foundation to train me so that I also join you to be a farmer.”

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He appealed to the foundation to provide further empowerment for the trained farmers to help them kickstart their agricultural ventures.

“If the farmers have land for farming, I believe the foundation will provide financial aid to keep their farms running,” Adesina added.

Also speaking at the event, the Lagos State Commissioner for Agriculture and Food Systems, Ms. Abisola Olusanya, represented by the Director of Fisheries, Mrs. Osunkoya Daisi, lauded the Foundation’s efforts in bolstering the state’s food security.

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“On behalf of the Lagos State Government, we would like to express our sincere appreciation to NNPC Foundation for training our farmers and for training all the farmers all over the country,” she said.
“Definitely, the training will help improve food production. We can see the impact of climate change effects in agriculture. I am sure farmers have been equipped with climate-smart agriculture techniques to improve production.”

The NNPC Foundation Ltd/Gte is the Corporate Social Responsibility (CSR) arm of the Nigerian National Petroleum Company (NNPC) Limited. It was incorporated in February 2023 to manage the company’s CSR initiatives and enhance Nigeria’s socio-economic development.

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Education

NUC grants ESUT full accreditation for Law, 7 other programmes

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The National Universities Commission, (NUC), has given full accreditation to the Enugu State University of Science and Technology (ESUT), for her Law programme.

According to the Public Relations Officer of ESUT, Mr Ikechukwu Ani, this is contained in a letter addressed to the institution’s Vice Chancellor, Prof. Aloysius Okolie, on Wednesday in Enugu by the NUC.

Ani said that in the letter, the Executive Secretary of NUC, Prof. Abdullahi Ribadu said the report was contained in the result of the October/November 2024 accreditation of academic programmes in Nigerian universities.

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Ani disclosed that other programmes in the institution accredited by the NUC include Master of Science in Business Management; Education Computer Science; Education Physics and Agricultural Engineering.

Other accredited programmes he said were Quantity Surveying; Urban and Regional Planning; and Applied Microbiology.

He said that the letter quoted Section 10 (1) of the Education National Minimum Standard and Establishment of Institutions, Act CAP E3, Laws of the Federation of Nigeria 2004 as empowering the NUC to lay down minimum academic standards for all academic programmes taught in Nigerian universities.

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He said the session also empowers the NUC to accredit such programmes.

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Crime

Court remands 2 over alleged attempted murder

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Court discharges man accused of burning father’s house in Abuja

An Ikeja Magistrates’ Court, Lagos, on Wednesday, remanded two persons, Olaitan Fasasi and Kehinde Tobiloba in a correctional facility over alleged attempted murder.

Fasasi, 40, and Tobiloba, 26, whose addresses were not provided, are being charged with conspiracy, attempted murder and membership of a secret society.

The Magistrate, Mr L.A Owolabi, did not take the plea of the defendants for want of jurisdiction.

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Owolabi directed the police to forward the case file to the Director of Public Prosecution for legal advice.

He thereafter adjourned the case until May 31 for mention.

The Prosecutor, Josephine Ikhayere, told the court that the defendants committed the offences at about 5.02p.m on Feb. 15, at Mushin, Lagos.

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She said that Fasasi, Tobiloba and others now at large, attempted to commit murder by shooting at a resident, Alfred Ademola.

“They armed themselves with a locally made gun. They belong to Eiye Confraternity, a group proscribed by law,”, she said.

Ikhayere said that the offences contravened Sections 230(1) and 411 of the Criminal Law of Lagos State, 2012.

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He said that the actions of the defendants also contravened Section 2(3)(a)(b)(c)(d) of the unlawful societies and Cultism Law of Lagos State Law.

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