Business Nigeria: Fuel Scarcity Might Persist Till 2018 - Bloomberg

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LequteMan

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Fuel scarcity situations in the country may well persist till 2018 when Dangote's refinery comes on stream, a Bloomberg report has stated.

Nigeria as a whole needs 40 million litres of fuel daily and the nation's refineries can't provide half of the stipulated amount. According to reports, refineries have the installed equipment to process 445,000 barrels of crude a day, yet they operated at an average of 5 per cent of that capacity in 2015.

Nigeria turns to importation of fuel to meet up with the demand. However this has proved inadequate as scarcity occurs from time to time with pump fuel prices skyrocketing whenever it happens.

The government insists there will be room for the refineries to operate alongside the private ones. Yet with the NNPC burdened by debt of about $5 billion owed to its jointventure partners, it is unlikely to compete efficiently with private refineries, according to the head of energy research at Ecobank Transnational Inc, Dolapo Oni.

The Dangote Refinery and Petrochemical Company has the capacity to produce 55.2 million litres of Premium Motor Spirit (PMS) daily, and will also produce other fuels as well as fertiliser and polymers, according to Devakumar Edwin, chief executive officer of the Dangote Group.

“It’s a very large refinery. We can produce the entire fuel requirements of the country,” he said.
 

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