The Nigeria Extractive Industries Transparency Initiative (NEITI) says that Nigeria recorded the highest importation of PMS estimated at 23.54 billion litres in 2022, which was the highest ever.
It also said the nation reported the lowest import volumes of 16.88 billion litres in 2017.
This is even as the agency commended the Nigerian National Petroleum Company Limited (NNPCL) for the completion of Port Harcourt Refinery Phase 1 and the resumption of Warri Refinery.
In a statement signed by Obiageli Onuorah, acting director, Communication & Stakeholders Management, NEITI said the revival of the two refineries is a monumental step towards achieving energy self-sufficiency and fostering economic sustainability.
By reducing the staggering costs associated with fuel importation, this milestone will positively impact Nigeria’s foreign exchange reserves and create a ripple effect across key sectors of the economy, she said..
“These accomplishments represent significant strides towards addressing Nigeria’s long-standing dependence on imported petroleum products” the statement noted.
NEITI acknowledged that the revitalisation of the Port Harcourt and Warri refineries has the potential to enhance energy security, create jobs, stimulate local industries, and free up critical funds that can be redirected towards national priorities like health, education, and infrastructure.
“You will recall that NEITI through its Industry Reports for the Oil and Gas 2023 released recently disclosed that between 2006-2023 (in 18 years), a total of N15.87 trillion has been expended as under recovery through price differentials (Subsidy) with 2022 recording the highest sum of N4.714 trillion.
“Furthermore. Between 2022 and 2023, importation volumes declined by 3.25 billion litres (14%) from 23.54 billion litres in 2022 to 20.28 billion litres in 2023.”
NEITI is optimistic, saying that “with the current efforts to put the refineries back to work, it is delighted that the huge payments expended on subsidy will hence forth be available to support national development, ongoing rebuilding of the national infrastructure and poverty reduction.”
“We request the NNPC to expedite action on the second phase of the Port Harcourt Refinery and the ongoing rehabilitation of the Kaduna refinery. This should be followed closely with the restoration of the phase 1 of the Port Harcourt refinery to optimal capacity in the ongoing rehabilitation efforts,” NEITI stated.
“We commend the leadership of the NNPCL team for their resilience, dedication, and unwavering determination in executing this complex and challenging task.”
The statement added that as stakeholders in Nigeria’s energy sector, NEITI remains committed to supporting NNPCL’s efforts to ensure the long-term success of these projects and to share the achievements with national and global partners, including the Extractive Industries Transparency Initiative (EITI) community.
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