According to recent news reports, poor funding is posing a threat to the 200,000 barrels per day modular refinery projects. This is because out of 40 licenses granted to companies who applied to operate modular refineries, only five are currently operating.
The licensees are largely challenged by a lack of access to finance, a situation that has led to threats by the Federal Government to terminate the licenses of those who have demonstrated an inability to proceed with their plans.
Currently, the Crude Oil Refiners Association of Nigeria (CORAN) has about 14 registered members, including Dangote Refinery, but there are about 40 licenses issued and if all the active licenses were to be operational, they would be refining about 200,000 barrels per day. Just recently, the body said inadequate crude supply had hindered members’ operations and urged intervention by the government.
However, the major crippler of the modular refineries’ expansion is funding. Key stakeholders, who spoke on the issue, lamented the lack of access to funds.
