By Bolaji Peters (SIWES student, Polytechnic Iresi)
Nigeria’s oil sector grapples with disorder, regression, and turmoil. Dangote Petroleum Refinery’s move to import crude oil from the US underscores the industry’s woes: soaring crude costs, deficient local refining capabilities, and inadequate supply.
Urgent action by President Tinubu is imperative to rectify these issues and preserve Nigeria’s pivotal role as a crude oil producer.
The Dangote Petroleum Refinery, a significant project in Nigeria, could revitalize the oil and gas sector.
Yet, challenges loom large, including a dearth of crude oil supply and underperformance of government-run refineries.
These hurdles hinder economic growth, prompting calls for sectoral reform and investment.
Amidst global oil giants reaping substantial profits, Nigerian citizens grapple with exorbitant petroleum prices post-Tinubu’s removal of subsidies and currency floatation in 2023.
Moreover, rampant industrial oil theft, estimated at 400,000 bpd, stifles production.
Mele Kyari, NNPC Group CEO, notes Nigeria’s exorbitant barrel production costs due to insecurity, taxation, and other factors, prompting some IOCs to divest.
Dangote Refinery’s introduction of imported crude may reshape price dynamics, raising concerns about energy security and reliance on foreign sources.
While diversifying supply could mitigate domestic production disruptions, it also exposes Nigeria to global market fluctuations and geopolitical risks.
Nigeria stands at a crossroads: fostering indigenous production or succumbing to foreign imports.
The decision hinges on strategic foresight and bold reforms to safeguard Nigeria’s energy independence and economic stability.
