Nigeria to invest US$1.6 billion to upgrade refineries

Nigeria’s Oil Minister Diezani Alison-Madueke said the country plans to raise the capacity of its three oil refineries over the next two years, which will require an investment of US$1.6 billion. By the end of 2014, the Port Harcourt, Warri and Kaduna refineries would be able to operate at 90% capacity, Madueke added. Although the government decided to improve refining infrastructure after revelations concerning the graft-ridden subsidy program in Nigeria were made public this year, problems in the distribution chain remain.
 
Because of its refineries’ inability to operate efficiently, Nigeria, which should be Africa’s largest oil exporter, has become a net importer of oil products. It often has to pay high prices to buy back its own crude, which is processed abroad.
 
Haruna Momoh, managing director of Nigerian National Petroleum Corp.’s pipelines and products marketing subsidiary, said that more than 774 breaks have been discovered across the country’s network of pipelines. As a result, most of the 21 depots across the country cannot be used. (October 10, 2012)