Discover how modular refineries are transforming Nigeria’s oil and gas sector, boosting local refining capacity, and reducing reliance on imported fuel.

Nigeria, despite being a major oil producer, has long relied on imported refined petroleum products due to inadequate local refining capacity. Modular refineries are emerging as a solution to this challenge, offering a cost-effective and scalable way to boost domestic production. This article explores the rise of modular refineries in Nigeria and their impact on the oil and gas sector.

Modular refineries are smaller, prefabricated refining units that can be quickly deployed and scaled to meet local demand. Unlike traditional refineries, which require massive capital and long construction timelines, modular refineries are more flexible and cost-efficient. According to the Department of Petroleum Resources (DPR, 2023), Nigeria has licensed over 20 modular refineries, with several already operational.

One notable example is the Waltersmith Refinery in Imo State, which began operations in 2020 with a capacity of 5,000 barrels per day (bpd). The refinery has significantly reduced Nigeria’s reliance on imported diesel and kerosene, creating jobs and stimulating economic growth in the region.

The Nigerian government is also supporting modular refineries through policies and incentives, such as the Crude Oil Refining Initiative (CORI). These efforts aim to increase local refining capacity, reduce fuel imports, and curb illegal refining activities.

Modular refineries are revolutionizing Nigeria’s oil and gas sector, offering a sustainable solution to the country’s refining challenges. By investing in these facilities, Nigeria can achieve energy independence and drive economic development.

References:

• Department of Petroleum Resources (DPR). (2023). “Modular Refineries in Nigeria.”
• Waltersmith Refinery. (2023). “Operational Update.”