Nigeria is unarguably one of Africa’s largest oil producing nations, having oil as its major export product and yet despite this seeming wealth, the nation’s economical landscape brims with rot. The country is afflicted with economic challenges stemming from factors including the lack of refineries, hence the import of refined crude oil which becomes a luxury for the average Nigerian to afford.
Finished products from crude oil like kerosene, diesel and fuel are no longer easily accessible because of its unavailability and unstable prices, more pitiful that it’s from a country with an abundance of oil. This challenge has ushered in the emergence of modular refineries, suggested by industry experts as a way to reduce the importation of refined crude oil and drive economic sustainability. Onasanya Oluwasegun, a seasoned mechanical engineer and advocate for continuous learning, thoroughly explains the potential of modular refineries and how it can transform Nigeria’s oil and gas sector.
Modular refineries are small-scale refineries built to process crude oil into finished products on a small-scale basis as compared to the large-scale production by traditional refineries. This form of refinery is vital for numerous reasons, Oluwasegun hints that they provide a cost-effective and scalable solution for processing crude oil domestically. They are also lower capital-intensive and can be easily established within a short time frame in contrast to traditional large-scale refineries that require the moving of mountains before establishment. This only points to the direction that Nigeria can base on these small-scale refineries to reduce the foreign dependence of refined products, addressing fuel shortages and unnecessary soaring prices.
According to Onasanya Oluwasegun, the economic benefits of modular refineries if they are established is multifaceted. “The operations of these refineries would need skill and knowledge, that is where the capacity for graduates with accurate degrees gets deployed,” he asserts.
Opportunities would stretch to stimulating the host communities of the refineries, creating viable and vibrant economies for them leading to credible development. These developments range from improved infrastructure and social amenities.
Revenues generated from refining and exporting petroleum products can significantly bolster the national economy, providing much-needed funds for national development projects.
Oluwasegun extends the advantages of modular refineries to the environment where he posits that the small-scale refineries mostly incorporate modern technologies, reducing the emission of gasolines and offensive fossils, unlike the traditional large refineries that poses so much threat to the environment and climate. The impact of this reveals that amidst oil drillage and the processes involved in refinement, the surrounding environment would witness less environmental pollution and the presence of very little carbon footprint.
And then, socially, communities around these modular refineries would sufficiently benefit with drastic improvement mostly in the healthcare, education, and transportation sector as developmental strides would be committed to offering corporate social responsibility by the refinery operators.
“The challenges preventing the establishment of modular refineries mostly boils down to the government,” Oluwasegun hinted. “Even when private bodies decide to set up modular refineries, they are met with stringent hurdles restricting their implementation process. Hurdles such as regulatory approval and poor road network discourages the investment of modular refineries.”
It’s necessary that the government provides adequate infrastructure that is necessary to support the transportation of modules and the distribution of refined products.
Making the procedures for obtaining permits should be less tedious and done in a timely manner as this isn’t just to fatten the pockets of the private investors but to help both the domain community, the government and the nation’s economy in general. It’s also important that training programs are arranged to develop the skills of the workforce and get them properly acquainted within the refinery terrain.
Oluwasegun also cites that another way to promote the development of modular refineries is taking cognizance of the states with large oil wells in the country and setup teams to make refineries in each of this state work. This decentralization would greatly help the economy, thereby causing income balance across the country and reducing rural-urban migration. This alongside with the investment of good infrastructure around the modular refinery area to ensure smooth flow of barrels and modules should be implemented. He adds that this can be made feasible when there’s a harmonious relationship that could form strong partnerships between the government and private investors to allow for the existence of these refineries.
The creation of modular refineries is a brilliant idea to redeem Nigeria out of her economic hooks. These refineries are poised to proffer solutions that would stabilize oil prices, reduce the importation of refined oil, achieve energy security and improve the general economic landscape of Nigeria. With the active involvement of the government through deliberate actions and reformed policies, Nigeria can harness the potential of modular refineries to drive long-term economic development and improve the quality of life for its citizens.
