The Edo Refinery and Petrochemicals Company Limited (ERPCL) is currently grappling with a critical shortage of crude oil supply, which is severely limiting its operational capacity despite being a fully functional refinery with a capacity of 1,000 barrels per day. Segun Okeni, a representative of the company, highlighted that although ERPCL has established crude oil supply agreements with Seplat and ND Western since 2022, bureaucratic hurdles have obstructed access to the essential resource.
Okeni elaborated that repeated attempts to engage with the Nigerian National Petroleum Company Limited (NNPCL) over the past three years have not yielded any positive outcomes. In light of these challenges, the management of the refinery is calling for the intervention of NNPCL’s Group CEO, Mele Kyari, to facilitate a consistent supply of crude oil. The ongoing supply issues have led to substantial economic losses for the refinery and have deterred potential investors in the modular refining sector.
The difficulties faced by Edo Refinery are emblematic of broader challenges confronting modular refineries in Nigeria when it comes to securing crude oil supplies. Okeni urged NNPCL and other crude oil producers to enhance infrastructure for truck loading, expressing concerns over perceived favoritism towards larger refineries, such as Dangote’s.
With the total daily demand of all modular refineries accounting for less than two percent of Nigeria’s daily crude oil production, Okeni argued that supplying these smaller refineries could help mitigate pipeline losses and enhance their competitiveness. He warned that if local investors continue to struggle with access to crude oil, it could dissuade foreign investors from engaging with Nigeria’s refining sector, further exacerbating the challenges faced by the industry. The situation remains critical and frustrating for stakeholders involved in the modular refining landscape.