The Institute of Chartered Economists of Nigeria, South-South, have highlighted the need for the nation’s ailing refineries to be repaired to avoid a monopoly in the oil refining market in the coming years.
The Chief Coordinator, ICEN, South-South, Mr Friday Udoh, lamented that Nigeria had continued to rely on importation for petroleum products consumed in the country for many years.
He noted in a report made available to our correspondent that the refineries, located in Port Harcourt, Kaduna and Warri, had been utilising less than 25 per cent of the installed capacity of 445,000 barrels per day since 1998.
While he commended the construction of the 650,000-bpd Dangote refinery, the economist, however, said, “Achieving this without competition from the 445,000-bpd refinery will hinder effective market operation and give birth to a monopoly, another form of energy insecurity.”
According to Udoh, fixing the country’s refineries is necessary in order to achieve energy security.
He said domestic refining would have been a big relief for the Nigerian economy in relieving the country from fiscal stress, forestalling economic stability, and creating employment.
