The Federal Executive Council has approved contracts worth $1.4 billion for the rehabilitation of the Warri and Kaduna refineries.
Nigeria has four refineries, two of which are in Port Harcourt, but none of them have been able to operate at full capacity as the country continues to import petroleum products.
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The refurbishment is expected to turn the refineries around and get them ready to meet local oil demand.
Mr Mele Kyari, the Managing Director of the Nigerian National Petroleum Corporation (NNPC), said in June that the rehabilitation of refineries, combined with private efforts such as the Dangote Refinery, will turn Nigeria into a “hub of petroleum products and supply.”
“It will change the dynamics of global petroleum supply in the sense that the flow is currently coming from Europe and will be reversed to another direction,” he said.
“We will legitimately be the supplier for West Africa, as well as many other parts of the world.”
The success of refineries can also have a positive impact on the price of petroleum products such as gasoline on the street.