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Nigeria spent $1.6 billion maintenance to improve its refineries to almost no effect as levels remain low

The total cost of building these four refineries was estimated at $1.85 billion, an amount not far from what government had spent maintaining it in the last 15 years.

Nigerian Oil Minister, Dr Emmanuel Ibe Kachikwu promises to end fuel importation by 2019, or he would resign from his position.
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Nigeria is the fifth largest exporter of crude oil in the world, but spends over $16 million per day importing refined petroleum products. This situation has been attributed to the poor refining capacity of the country.

The total utilisation capacity of the refineries was estimated at below 40% of the total installed refining capacity,making them the worst performing refineries in Africa.

Nigeria’s Minister of State for Petroleum Resources, Dr Ibe Kachikwu confirmed the poor conditions of the plants during an oil and gas stakeholders' meeting in Abuja on Tuesday, July 18, 2017.

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"Our refineries have not been maintained at the same levels that other nearby countries have continued to do theirs. Look at Ghana and Ivory Coast, the same refineries, about the same ages and working at over 90 per cent capacity," he said.

Africa’s largest refinery is the Algeria's Skikda refinery built in 1983. It currently operates on 320,000 bpd.

Other refineries in the continent such as Libya’s Ra Lanuf refinery built in 1984 (220,000bpd), South Africa's SAPREF Durban refinery built in 1965 (180,000 bpd) and Egypt's Cairo Mostorod refinery built in 1982 (142,000 bpd) all had a utilisation rate of 85%.

For Nigeria, the best performing refinery (Port-Harcourt Refinery) has a utilisation rate of 10% in 2016.

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A staff of the NNPC, who spoke on the condition of anonymity also stated that: "Port Harcourt is currently running at about 10% of its capacity, as no major maintenance work has been carried since 2000,” he said.

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