In a recent discussion hosted by News Central on the social platform X, titled “Oil on the Mind”, prominent figures in the oil and gas sector gathered to explore pressing issues around Nigeria’s energy landscape.
Speakers included Kelvin Emmanuel, Co-founder and CEO of Dairy; Deji Adeyanju, a legal practitioner with a focus on national development; and Olajumoke Ajayi, CEO of Ingentia Energies Limited.
The conversation aimed to demystify the complexities of the industry, addressing concerns over fuel prices, refinery performance, and economic policies affecting millions of Nigerians.
The X Spaces, held on Monday, December 23, opened with a straightforward acknowledgment of the public’s growing frustration. Nigerians are struggling with soaring fuel costs, which have disrupted household budgets and businesses across the country.
The removal of subsidies, combined with the fluctuating naira exchange rate, has led to record-high inflation in goods and services. This economic pressure has sparked debates over the government’s policies, particularly regarding the functionality of the Port Harcourt refinery and the much-anticipated Dangote refinery.
Kelvin Emmanuel provided a detailed analysis of the current state of Nigeria’s oil and gas sector. He questioned the claims that the Port Harcourt refinery is operational, asserting that what has been presented as “refining” is, in fact, blending imported components.
“You cannot refine petrol without producing petroleum gases as by-products,” Emmanuel explained, highlighting technical inconsistencies in the refinery’s supposed operations. He further noted that the pipeline meant to supply crude oil to the Port Harcourt refinery has been out of service since 2019. This, he argued, raises doubts about how the facility could be processing crude oil at all.
Journalists invited to inspect the refinery were reportedly shown operations that Emmanuel described as superficial. He questioned their understanding of the difference between blending and full-scale refining, pointing out the absence of critical infrastructure like catalytic reformers, which are essential for producing petrol.
“Do the journalists understand that when you refine for PMS, petroleum gases are a compulsory derivative of recovered premium motor spirit? No. Do the journalists understand that there’s a trunk line that is supposed to feed LME with crude oil from Boni River terminal and that trunk line has been out of service since 2019? No, they don’t understand.
“Do journalists understand the difference between having a crude distillation unit and having a catalytic reformer in the refinery that was built as a modular plant to supply LPFO to the offshore operations of the lighthouse of SPDC that built that refinery in 1965? No.” He maintained.
Deji Adeyanju joined the conversation with a broader critique of the government’s approach to economic management. He argued that the removal of fuel subsidies without establishing functional local refineries has left Nigerians at the mercy of fluctuating global oil prices.
“The president came on board with policies that have worsened the economic plight of the nation,” Adeyanju said, attributing the current crisis to poor planning and governance.
Attention then turned to the Dangote refinery, widely regarded as a potential game-changer for Nigeria’s energy sector. Unlike the Port Harcourt refinery, the Dangote refinery is producing high-quality petrol and exporting it to international markets.
Emmanuel contrasted Dangote’s success with the inefficiencies of state-owned refineries, stating that private enterprise has achieved in eight years what the government has failed to accomplish in decades, despite spending trillions of naira.
Olajumoke Ajayi, brought an upstream perspective to the discussion. She attributed the challenges in the oil and gas sector to a combination of outdated infrastructure, policy inconsistencies, and vested interests. Ajayi emphasised the need for transparent governance and a shift in focus towards long-term investments in refining capacity.
Another recurring theme was the role of what Emmanuel referred to as a “state capture” of the oil and gas sector. He alleged that vested interests have prioritised short-term gains over the country’s broader economic well-being, perpetuating dependence on imported fuel. This dependence not only drains Nigeria’s foreign reserves but also limits the country’s ability to stabilise its currency.
Participants also criticised the government’s communication strategy. Claims of refinery functionality and progress in the sector were dismissed as public relations exercises, designed to appease an increasingly sceptical population.
Emmanuel questioned why the government continues to insist on the Port Harcourt refinery’s operations despite clear evidence to the contrary.
“If the refinery is working, why are they struggling so hard to prove it?” he asked.
As Nigerians await meaningful reforms in the oil and gas sector, the discussion reinforces the urgent need for accountability and technical expertise in decision-making. The country’s refineries, once symbols of industrial promise, now stand as stark reminders of missed opportunities.
With growing public discontent over fuel prices and inflation, the path forward will require not only infrastructural improvements but also a rethinking of policies that have long prioritised short-term fixes over sustainable solutions.
For many Nigerians, the hope lies in a future where the country’s vast natural resources translate into tangible benefits for its citizens.
