The Nigerian Fuel Energy Supply Crisis And The Proposed Private Refineries – Prospects And Problems

Agwom Sani – Zandi Adubok
2008 Zenodo  
Dynamism of the world economy has compelled Nigerians to accept the liberalization of its economy to encourage private sector participation and induce managerial efficiency. This has become very imperative most especially, in the downstream sub-sector of the Nigerian oil and gas industry by the establishment and management of private refineries in view of the persistent fuel energy crisis. An attempt is made here at analyzing the prospects and problems of such refineries that are expected to
more » ... are expected to end the fuel energy crisis which started in the 1970s due to increased demand for petroleum products for rehabilitation and reconstruction after the civil war but later metamorphosed into a hydra-headed monster in the 1980s to date. Efforts towards arresting this crisis by the government through the establishment of more refineries, storage depots and network of distribution pipelines etc achieved a short-term solution due to the abysmal low performance of the refineries and facilities in contrast to increasing demand for petroleum products. It is deduced that the low performance resulted from bad and corrupt management by indigenous technocrats and political leaders as well as vandalization of facilities. Prospects for such investments were identified, as well as some of the problems to content with. This is in order to understand the pros and cons of such investments in view of their capital intensiveness and the need to achieve economic goals that must incorporate environmental and social objectives.
doi:10.5281/zenodo.824289 fatcat:k3xcjswmfrhvzgzqlairki7ney