HOW ILLEGAL REFINERIES WILL TRANSFORM INTO MODULAR REFINERIES by Nigerian Government

It is no longer news that the Nigerian Federal Government made a policy decision to convert illegal refineries in the country to modular refineries. It is now becoming clearer how this transformation will evolve by the day as the government begins a process of turning his proposal to concrete actions.

The Nigerian Government concept and guidelines for the setting up of these refineries is being revealed daily through the Vice President Prof Yemi Osinbajo.
While on a visit to Abia State, which is also an oil producing state by virtue of crude oil being produced in some of their communities Profesor Osinbajo revealed some of the blueprints for the operation of the refineries.
The Vice President disclosed that every modular refinery will be established in an oil producing area as part of measures to address developmental challenges arising from many years of marginalization and neglect.
The Vice President also disclosed that the illegal refineries will be integrated into the structure of Modular refineries operations. Nigerian Government, he disclosed is considering a platform of co-operatives and groups of people in the Niger Delta teaming up to own and operate refineries so as to be able to successfully and profitably manage and sustain them.
Already experts in the Nigerian National Petroleum Corporation (NNPC) and the Nigerian Sovereign Investment Agency (NSIA) two bodies spearheading the takeoff of the new concept have given insight into how the new concept will operate.
Under the plan, Crude oil will be supply to the proposed modular refineries by Nigerian Government at a subsidized rate to discourage vandalism of crude oil pipelines and encourage a safer and greener environment in the Niger delta region. Apart from the Nigerian Government, Marginal field operators also can as well supply crude oil to these new modular refineries at agreed subsidizes rates to refine.
It is also proposed by the Government that owners and operators of illegal refineries will partner with their communities as shareholders in any modular refineries approved for an area while the NNPC and NSIA will hold equity in such a refinery to guarantee its operational efficiency and standard compliance.
It is further proposed by expert’s fine tuning the modular refineries concept that Memorandum of Understanding (MOU) with respective communities who subscribed to this vision will be entered into between them and the Nigerian Government to spelled out their shares and terms of operation. The Government represented by the industry regulators such as NNPC will supervise and regulate the implementation, operation, and Sustenance of such a refinery.
In respect of the technical aspect of transforming from a makeshift, local and crude refinery to a modern, structure and automated modular one the concept of transformation will be design and apply by the NNPC and NSIA. It is the believed of Government that such a modular refinery will be adapted to suit the use and operation of the low class and average literate community of the Niger Delta.
NEWS COMMENTARY;
The concept of converting local, makeshift refinery into modern modular one is a game changer in the development of the Niger Delta region. Apart from reducing the frequent vandalism of crude oil pipelines which cost the Nigerian government a fortune to repair, it will also ensure a safe and greener environment as gas flaring and fire incidents will be contained.
It will provide enormous employment to the people of the Niger delta, in turn, curbing restiveness and cultism. It will also improve the living standard of the people and engineered specialization and technical capacity of the people of the region.


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