Time for International Oil Companies to Build and Run Their Own Refineries Here in Nigeria

By Wilson Macaulay 

In an era where energy security and economic sovereignty are paramount, it is time for International Oil Companies (IOCs)  operating in Nigeria  which have the guaranteed market  to seize the  transformative opportunity to build  and operate  their own refineries here  in our country.  Today in the Telecoms sector  we have MTN and Airtel foreign and Global. Com  GLO  Nigerian brand. The Three Companies are doing well no discrimination. You patronize which one your like. I think that is what should happen in the Petroleum sector.Since the  arrival of MTN and Airtel, they have been counting and naming their blessings one after another.  Nigeria , Africa's largest oil producer,  offers an unparalleled guarantee of  a vast, ever-expanding market eager for refined products. The  IOCs by investing in local refining infrastructure,  can tap into a lucrative market, reduce reliance on imported fuels, and catalyze regional economic growth. This move does not only promise  substantial returns on investment but also aligns with global trends towards sustainability and self-sufficiency in the energy sector.

This view is paramount because in the recent  revelation, former President Olusegun Obasanjo highlighted a significant turning point in Nigeria’s oil industry. According to  former President  Olusegun Obasanjo, the international oil companies (IOCs) have refused to take equity shares in Nigeria’s ailing refineries which  are bedridden with corruption.  My take on the matter is that  the experience is a development which  calls for a strategic shift: it is now imperative for these IOCs to build and run their own refineries in Nigeria. There are germane ideas strong enough to substantiate the advocacy for oil majors to come upe with their refineries

The Obasanjo Revelation
Obasanjo’s statement sheds light on a critical issue that has plagued Nigeria’s oil sector for years. The refusal of IOCs to invest in existing refineries indicates a lack of confidence in the current infrastructure and management. However, it also opens up an opportunity for these companies to establish their own operations, leveraging their expertise and resources.

Why International Oil Companies Should Invest in Private Refineries,.

We have seen it play out in Telecom. All the Service Providers have a fare share of the available Market.

Guaranteed Market: 

Nigeria, with its large population and growing economy, offers a guaranteed market for refined petroleum products. The demand for gasoline, diesel, kerosene, and other refined products is consistently high, ensuring that any new refinery will have a steady stream of customers.

Strategic Location: 

Nigeria's geographic position is advantageous for both domestic and international markets. Refineries located in Nigeria can easily supply products to neighboring West African countries, increasing profitability.

Local Content Policies: The Nigerian government has been promoting local content policies that encourage foreign investment and partnerships with local companies. Building refineries in Nigeria aligns with these policies and can result in various incentives and support from the government.

Cost Efficiency: Importing refined products is significantly more expensive than producing them locally. By establishing refineries in Nigeria, IOCs can reduce transportation and importation costs, leading to better profit margins.

The Economic Impact
Building and running refineries in Nigeria will have a profound impact on the economy. It will create jobs, both directly in the refineries and indirectly through the supply chain and associated industries. Additionally, it will reduce Nigeria’s dependency on imported refined products, improving the trade balance and strengthening the naira.

Challenges and Solutions
Infrastructure: One of the primary challenges is the lack of adequate infrastructure. However, IOCs have the expertise and resources to develop the necessary infrastructure, including pipelines, storage facilities, and distribution networks, so their failure to invest before now is indeed the path not to tow .

Security: 

With the impressive security job already done by Tantita, PISL and a host of others, with the Government backing, working with the oil producing communities the problems of shortage of petroleum products like PMS , AGO,IOCs will need to work closely with local communities and the government to ensure security and stability in their operations.

Regulatory Environment: Navigating Nigeria’s regulatory environment can be complex. However, with proper planning and collaboration with regulatory bodies, IOCs can ensure compliance and smooth operations,  On a very strong note , l here by call in President Bola Ahmed TINUBU to take the message  serious by calling on the IOCs to 

Conclusion
The refusal of international oil companies to invest in Nigeria’s existing refineries should not be seen as a setback but as an opportunity for a new beginning. There  no way we can mix a new wine skin to an old one. The old wine wine according to Jesus will burst the new wine skin. The very  good opportunity which was given to Dangote  should now also be given to the  IOCs.'  By building and running their own refineries in Nigeria, the IOCs can tap into a guaranteed market, contribute to the country’s economic development, and secure their future in one of Africa’s largest oil producers. IPMAN Can still try by starting with modular Refineries of about Ten billion. Once we up the game of our refining capacity, so many good things will take shape. No pesimism should be entertained on this issue.l once argued that crude oil can be sold locally in naira  in an academic circle , but their Loud voices swallowed 

my lone voice on the strength of the crude oil being an international commodity. Today, we have seen the reality of it all. Dangote' now to buy crude oil in naira. Surprisely,  one  of the federal Agencies have reeled out a dossier of the benefits of the naira to buy crude locally Policy.

The time for action is now,  with the right strategies and partnerships, this vision can become a reality.