TheCable

The Oxford Business Group (OBG) has tipped Nigeria for better fuel import profile, following the apparent reforms in the nation’s downstream oil sector.

The business group which analysed the possibility of seven functional refineries in Nigeria, said the country is set to cut oil imports as it would inch closer to meeting its fuel needs.

In a report released on Monday, the global publisher said Nigeria is producing just 9percent of its needed premium motor spirit (PMS) consumption – a situation which is due to change.

“Domestic output meets only 9% of daily petrol consumption, 24% of dual-purpose kerosene use and 28% of automotive gas oil consumption, with the rest imported from abroad,” the report read.

“In fact, the country still relies on imports for some 86% of its aggregate consumption of more than 50m litres a day. Things are looking up, however.

“The Port Harcourt plant has already raised its operational capacity to about 60% of its 210,000 barrel per day (bpd) capacity, while production at the Warri refinery was projected to hit 80% of its installed 125,000-bpd capacity.

“Attention will now shift to the 110,000-bpd Kaduna refinery which is also set to come on-stream shortly. Were both plants to run at 80% of installed capacity, their output would be enough to meet domestic demand, according to Nigeria-based investment firm BGL.”

The group concluded that with the building of two refineries by the Independent Petroleum Marketers Association of Nigeria (IPMAN) in Kogi and Bayelsa state, and one by Dangote group outside Lagos, Nigeria could produce 900 bpd from three refineries.