Editorial
Addressing Petroleum Products Supply Challenges

Nigeria’s Federal Government recently announced that the commencement of operations at the 60,000 barrels per day Port Harcourt Refinery had been moved from December 2022 to the first quarter of this year. In September last year, the Minister of State for Petroleum Resources, Timipre Sylva, while speaking after a Federal Executive Council (FEC) meeting, promised Nigerians that the country’s biggest refinery would become functional by December 2022.
However, that was no longer possible, according to Sylva and the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPC), Mallam Mele Kyari. Both men spoke at the President Muhammadu Buhari Administration Scorecard (2015 – 2023) series, anchored by the Federal Ministry of Information in Abuja. The reason adduced by Sylva and Kyari was that the government was buying stakes in some upcoming privately owned refineries in the country because of the need to ensure the nation’s energy security.
Sadly, the Nigerian government, instead of developing refining capacity, waits patiently for the completion of private refineries currently being constructed to end fuel scarcity in the country. This compels the nation to rely on imported petrol for local consumption. This factor robs Nigeria of the gains of the current spike in crude oil prices. The contentious issue of fuel subsidy would not have arisen if Nigeria can refine all its needed petroleum products, as dependence on imported fuel has continued to put serious pressure on the nation’s foreign exchange account at the expense of other productive sectors of the economy.
We reject the reason given by the two government officials for the inability of the Port Harcourt Refinery to commence production last December as originally scheduled. If the refinery had worked, it would have added 60,000 barrels per day of Premium Motor Spirit (PMS) to the supply equation at a time when fuel scarcity has returned across the country and prices have skyrocketed to between N280 and N500 per litre at the few filling stations dispensing the product. This would have helped to reduce the burden on Nigerians.
Furthermore, we think that resuscitating and putting other local refineries back on stream will additionally boost the government’s desire to bridge the yawning gap in the demand and supply chain, and reduce the frustration millions of Nigerians are facing in efforts to move around from one place to another or power their homes. Getting more private sector-driven refineries, like Dangote, Waltersmith, and others to contribute to enhancing the volume or quantity of refined petroleum products available to consumers will help address the excruciating pains the people are experiencing.
At a time when inflation has risen to an all-time high, the Naira’s capacity to compete at the international market (exchange rate) is so weak, the purchasing power of the average Nigerian has been drastically whittled down, and economic opportunities are near zero. Hence, addressing the fuel supply hiccup is key to refocusing the nation, and returning it to a functional state.
Petrol shortages have been recurring for several decades in Nigeria. The present scarcity resurfaced about four months ago and has defied all logic and solutions. The government and its agencies are clueless, making disconnected statements and uncoordinated moves. Curiously, the Department of State Service (DSS) directed the NNPC Limited, the Independent Petroleum Marketers Association of Nigeria, and the Major Oil Marketers Association of Nigeria to resolve the fuel crisis in 48 hours.
Others directed by the Service were the Depot and Petroleum Marketers Association of Nigeria, Nigerian Association of Road Transport Owners, Nigeria Union of Petroleum and Natural Gas Workers, Petroleum Tanker Drivers Union, and other stakeholders. The queues initially appeared to reduce after the directive, but the reprieve did not last as the scarcity assumed a more acute dimension, frustrating Nigerians who are now spending many precious hours at filling stations.
Marketers were selling the product at prices ranging from N175 to N300 per litre in defiance of the regulated pricing regime, signifying an out-of-control. Some private depots in Port Harcourt, Lagos, and other cities increased the ex-depot price to N235/litre as against the approved N148.17/litre. The scenario is further proof of the disarray in the administration of President Buhari. A serious, coordinated government would have cobbled together an inter-agency effort, efficiently coordinated, and with tasks assigned to each agency.
This development is ignominious considering that Nigeria is one of the six leading oil producers and exporters in the world, a fact the President once underscored when meeting with stakeholders. But lamentations are not enough. The Buhari-led government should set to work immediately on a long-term scheme that will not only end scarcity, but ensure the refining of enough petroleum products locally for Nigerians’ consumption. The corruption-ridden importation, which has hampered local refining, is the bane of fuel supply.
Whenever Nigeria experiences fuel scarcity, there are usual speculations about likely causes, claims, and counter-claims by operators and regulators. But one constant fact is that scarcity is not often because of product non-availability but the general increase in the overall cost of importing the product, which usually affects marketers who are always without the required capital amid complaints of unsettled previous loans from the banks.
It is time to ask the Nigerian authorities pertinent questions. What has happened to the refineries the NNPC claimed had been turned around to complement import? What impact has the recently enacted Petroleum Industry Act (PIA) had on fuel supply? The law, passed after more than a decade of debate, was meant to overhaul the nation’s oil industry; is it doing that? What about the modular refinery development strategy that was meant to leverage local refining? Why is it not operational yet, and is there nothing to be done about that?
Buhari should stop treating petrol scarcity with levity. As President and de facto Petroleum Minister, he should suspend his endless foreign trips, and coordinate an inter-agency effort to resolve the current supply logjam. Certainly, enough excuses have been offered for the fuel scarcity in the country and sufficient damage has been done to the people’s well-being. The present administration can end this national shame if it shows a greater commitment to governance and the interest of the people.
Editorial
Making Rivers’ Seaports Work

When Rivers State Governor, Sir Siminalayi Fubara, received the Board and Management of the Nigerian Ports Authority (NPA), led by its Chairman, Senator Adeyeye Adedayo Clement, his message was unmistakable: Rivers’ seaports remain underutilised, and Nigeria is poorer for it. The governor’s lament was a sad reminder of how neglect and centralisation continue to choke the nation’s economic arteries.
The governor, in his remarks at Government House, Port Harcourt, expressed concern that the twin seaports — the NPA in Port Harcourt and the Onne Seaport — have not been operating at their full potential. He underscored that seaports are vital engines of national development, pointing out that no prosperous nation thrives without efficient ports and airports. His position aligns with global realities that maritime trade remains the backbone of industrial expansion and international commerce.
Indeed, the case of Rivers State is peculiar. It hosts two major ports strategically located along the Bonny River axis, yet cargo throughput has remained dismally low compared to Lagos. According to NPA’s 2023 statistics, Lagos ports (Apapa and Tin Can Island) handled over 75 per cent of Nigeria’s container traffic, while Onne managed less than 10 per cent. Such a lopsided distribution is neither efficient nor sustainable.
Governor Fubara rightly observed that the full capacity operation of Onne Port would be transformative. The area’s vast land mass and industrial potential make it ideal for ancillary businesses — warehousing, logistics, ship repair, and manufacturing. A revitalised Onne would attract investors, create jobs, and stimulate economic growth, not only in Rivers State but across the Niger Delta.
The multiplier effect cannot be overstated. The port’s expansion would boost clearing and forwarding services, strengthen local transport networks, and revitalise the moribund manufacturing sector. It would also expand opportunities for youth employment — a pressing concern in a state where unemployment reportedly hovers around 32 per cent, according to the National Bureau of Statistics (NBS).
Yet, the challenge lies not in capacity but in policy. For years, Nigeria’s maritime economy has been suffocated by excessive centralisation. Successive governments have prioritised Lagos at the expense of other viable ports, creating a traffic nightmare and logistical bottlenecks that cost importers and exporters billions annually. The governor’s call, therefore, is a plea for fairness and pragmatism.
Making Lagos the exclusive maritime gateway is counter productive. Congestion at Tin Can Island and Apapa has become legendary — ships often wait weeks to berth, while truck queues stretch for kilometres. The result is avoidable demurrage, product delays, and business frustration. A more decentralised port system would spread economic opportunities and reduce the burden on Lagos’ overstretched infrastructure.
Importers continue to face severe difficulties clearing goods in Lagos, with bureaucratic delays and poor road networks compounding their woes. The World Bank’s Doing Business Report estimates that Nigerian ports experience average clearance times of 20 days — compared to just 5 days in neighbouring Ghana. Such inefficiency undermines competitiveness and discourages foreign investment.
Worse still, goods transported from Lagos to other regions are often lost to accidents or criminal attacks along the nation’s perilous highways. Reports from the Federal Road Safety Corps indicate that over 5,000 road crashes involving heavy-duty trucks occurred in 2023, many en route from Lagos. By contrast, activating seaports in Rivers, Warri, and Calabar would shorten cargo routes and save lives.
The economic rationale is clear: making all seaports operational will create jobs, enhance trade efficiency, and boost national revenue. It will also help diversify economic activity away from the overburdened South West, spreading prosperity more evenly across the federation.
Decentralisation is both an economic strategy and an act of national renewal. When Onne, Warri, and Calabar ports operate optimally, hinterland states benefit through increased trade and infrastructure development. The federal purse, too, gains through taxes, duties, and improved productivity.
Tin Can Island, already bursting at the seams, exemplifies the perils of over-centralisation. Ships face berthing delays, containers stack up, and port users lose valuable hours navigating chaos. The result is higher operational costs and lower competitiveness. Allowing states like Rivers to fully harness their maritime assets would reverse this trend.
Compelling all importers to use Lagos ports is an anachronistic policy that stifles innovation and local enterprise. Nigeria cannot achieve its industrial ambitions by chaining its logistics system to one congested city. The path to prosperity lies in empowering every state to develop and utilise its natural advantages — and for Rivers, that means functional seaports.
Fubara’s call should not go unheeded. The Federal Government must embrace decentralisation as a strategic necessity for national growth. Making Rivers’ seaports work is not just about reviving dormant infrastructure; it is about unlocking the full maritime potential of a nation yearning for balance, productivity, and shared prosperity.
Editorial
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