The Nigerian National Petroleum Company Limited (NNPCL) has announced that the Kaduna Refinery and Petrochemicals Company (KDPRC) has now achieved more than 60% mechanical completion. This milestone represents a significant step towards reviving the refinery, which is crucial for Nigeria’s domestic oil and gas sector.
Isiyaku Abdullahi, the Executive Vice President of NNPCL’s Downstream sector, made this announcement on Tuesday during a workshop and engagement session with Kannywood artistes in Abuja. Abdullahi expressed optimism that the refinery would be fully operational within the year, marking a major achievement for the state-run oil company.
“We are working tirelessly on the pipelines, and insha Allah, Kaduna Refinery will come on stream this year,” Abdullahi stated. “We have gone more than 60% into the mechanical completion stage, and we are working towards delivering this refinery to Nigerians as soon as possible.”
The NNPCL has been pushing for the completion of the refinery, which has been under development for years. The refinery’s completion is seen as a key part of the government’s efforts to improve Nigeria’s refining capacity, reduce dependence on imported fuel, and address fuel scarcity in the country.
The Kaduna Refinery, which is located in the northern part of Nigeria, is one of the country’s four state-owned refineries. These refineries, including those in Port Harcourt and Warri, have been plagued by underperformance and years of neglect, resulting in Nigeria having to import a significant portion of its fuel needs.
The completion of the Kaduna Refinery is expected to ease the pressure on Nigeria’s fuel importation, which has long been a drain on the nation’s foreign reserves. The refinery is also seen as a crucial part of the NNPCL’s broader goal of revitalising Nigeria’s oil and gas sector and improving the country’s self-sufficiency in petroleum products.
Abdullahi confirmed that NNPCL is working on more than just the refinery’s mechanical completion. In addition to the refinery, the company is also working on upgrading and revamping Nigeria’s pipeline infrastructure, which is essential for transporting crude oil and refined products across the country.
“The pipelines are also being worked on simultaneously with the refinery. We are committed to completing both projects, and by the grace of God, we are on track to finish them this year,” Abdullahi added.
Abdullahi also provided an update on the progress of other refineries in Nigeria. He noted that under his supervision, the Port Harcourt and Warri Refineries have seen significant improvements. The NNPCL has invested in revamping these refineries, and Abdullahi expressed hope that the Port Harcourt Refinery would be completed and brought back into operation by the end of this year.
“By God’s grace, this year, we will deliver the Port Harcourt Refinery. All three refineries—Port Harcourt, Warri, and Kaduna—work directly under my superintendence,” Abdullahi said.
The revamp of Nigeria’s refineries has been a priority for the NNPCL, as the country has struggled for years with the inefficiency of its domestic refineries. The goal is to bring all the country’s refineries back to full capacity, reducing reliance on imported petroleum products and creating more jobs in the sector.
In addition to the progress on the refineries, Abdullahi also spoke about an exciting opportunity for Nigerians to invest in the NNPCL’s growth. He revealed that the company plans to go public soon through an Initial Public Offering (IPO), offering Nigerians a chance to invest in the country’s oil and gas sector.
Abdullahi encouraged Nigerians to prepare for the IPO, which is expected to be launched in the near future. He urged citizens to set aside funds in order to take part in the offer and benefit from the oil and gas industry, which has a significant impact on the global economy.
“For all Nigerians, there is an opportunity. Very soon, we will go IPO. We will go public. Put certain amounts of money aside so that you can come and get from the oil and gas sector,” Abdullahi said.
The NNPCL’s IPO represents a move towards greater transparency and accountability in the management of Nigeria’s oil resources. It is also seen as a way to give Nigerians a stake in the nation’s vast oil wealth, which has been a source of both economic growth and controversy over the years.
Despite the progress being made with the refineries and the upcoming IPO, the Nigerian oil sector still faces several challenges. One of the most pressing issues is the continued underperformance of many of Nigeria’s refineries. Although NNPCL has made efforts to address this, there is still a need for sustained investment and overhaul of existing infrastructure.
Another challenge is the issue of oil theft and pipeline vandalism, which continues to plague Nigeria’s oil industry. These problems not only hinder the effective operation of pipelines and refineries but also contribute to environmental damage and loss of revenue for the government.
The oil and gas sector in Nigeria is also grappling with fluctuating global oil prices, which can impact the profitability of oil-related ventures. Additionally, the country’s reliance on oil exports remains a vulnerability, as global shifts towards renewable energy could affect demand for fossil fuels in the future.
Nevertheless, the NNPCL’s efforts to revive the Kaduna, Port Harcourt, and Warri Refineries are seen as steps in the right direction. If successful, these efforts could significantly improve Nigeria’s domestic refining capacity, reduce fuel imports, and provide more jobs for Nigerians in the oil and gas industry.
