*Obaseki-revolutionizing-states-own-oil-gas-industry
Edo State is fast becoming a hub for the oil and gas industry in Nigeria, with the establishment of two modular refineries in the state. The first is the Duport Refinery, which houses a 10,000-bpd modular refinery, and the second is a 6600 barrels per day modular refinery established by Edo Refinery and Petrochemical Limited and AIPCC Energy Limited. The establishment of these refineries is a major achievement of the Governor Godwin Obaseki-led administration, and it is expected to have a significant impact on the state’s economy and the entire Nigerian oil and gas sector.
Nigeria is one of the largest oil-producing countries in the world, yet it relies heavily on the importation of refined petroleum products due to the poor performance of its refineries. Nigeria has four national refineries, namely, Kaduna, Warri, and Port Harcourt. Yet none of these refineries are working at full capacity. This has resulted in the country’s inability to meet the domestic demand for refined petroleum products and has led to the importation of refined petroleum products.
Several factors have contributed to the poor performance of Nigeria’s refineries, including inadequate maintenance, poor management, and underfunding. The refineries have been poorly maintained over the years, resulting in frequent breakdowns and shutdowns. The poor management of the refineries has also contributed to their poor performance. The refineries have been plagued with corruption, inefficiency, and lack of accountability, which have resulted in their poor performance.
Underfunding has also been a significant factor contributing to the poor performance of Nigeria’s refineries. The federal government has not invested enough in the refineries over the years, resulting in inadequate infrastructure, outdated equipment, and lack of modern technology.
The modular refineries in Edo State established riding on the back of the reforms of Governor Godwin Obaseki remains the exception in Nigeria as they are the only refineries that are currently working in the country and this is due to several reasons.
First, they have been established in a more conducive environment. The Governor Godwin Obaseki-led administration has created an enabling environment for businesses to thrive in the state. The administration has initiated several policies and programmes aimed at attracting investments into the sector and creating an enabling environment for businesses to thrive. This has resulted in the establishment of the modular refineries in Edo State, which have been successful.
Secondly, the modular refineries in Edo State are designed to be modular, meaning that they can be easily assembled and disassembled. This design feature makes them more flexible and adaptable to the changing demand for refined petroleum products. This means that they are easier to maintain and operate, resulting in fewer breakdowns and shutdowns. The modular refineries are also designed to be more efficient, producing high-quality refined petroleum products at a lower cost.
The benefits of having a refinery in Edo State are numerous. First, it will create job opportunities for residents of the state. The establishment of the modular refineries will require skilled and unskilled workers to operate the facilities, and this will create employment opportunities for residents of the state. The refinery will also attract ancillary businesses, which will create even more employment opportunities for residents.
The establishment of the modular refineries will boost the state’s economy. The oil and gas industry is a major contributor to the Nigerian economy, and the establishment of refineries in Edo State will increase the state’s contribution to the economy. The refineries will also reduce the state’s dependence on imported petroleum products, which will save foreign exchange for the country.
Thirdly, the establishment of modular refineries in Edo State will promote local content development. The Nigerian government has been touting local content development in the oil and gas industry, but the establishment of the refineries in Edo State will provide tangible opportunities for further development of local content.
Interestingly, the Edo Modular Refinery and Petrochemicals Company Limited is a public-private partnership between the state government and AIPCC Energy Limited. The company was established to promote the growth of the oil and gas sector in Edo State and to create job opportunities for residents of the state. The company has a 60% equity stake in the refinery, while AIPCC Energy Limited has a 40% stake.
Another achievement of the Governor Obaseki-led administration is the strengthening of the Edo State Oil and Gas Producing Areas Development Commission (EDSOGPADEC). The commission was established to promote the development of oil-producing communities in the state. The commission is responsible for providing social and infrastructural amenities to oil-producing communities in the state.
The modular refineries are a step in the right direction for Nigeria’s oil and gas industry, and it is hoped that the federal government and other state governments will take a cue from the Edo State Governor, Mr Godwin Obaseki.
