Oil
Modular refineries vital for fuel security, says Rainoil MD
Rainoil Managing Director Emmanuel Omuojine has called for decentralized modular refineries and market-driven pricing to secure Nigeria's downstream sector.
Key points
- Over-reliance on a single supply source leaves the domestic fuel market vulnerable to disruptions.
- Strategic placement of modular refineries near demand centres can bolster regional fuel security.
- Government-controlled pricing and below-market mandates discourage essential sector investments.
Supply vulnerability
Speaking at the recent Nigerian Association of Energy Economists (NAEC) conference in Lagos, Rainoil Limited Managing Director Emmanuel Omuojine warned that depending on a single fuel supply source creates structural fragility in Nigeria. According to Punch reporting, he noted that market shocks from maintenance issues, logistics constraints, or geopolitical tensions immediately affect the entire country under a centralized supply model.
To mitigate these risks, Omuojine advocated for the development of modular refineries strategically situated close to primary demand centres across Nigeria and the wider West African region. He stated that this decentralized approach would enhance supply security and foster healthier competition within the downstream petroleum industry.
Pricing and investment
Addressing commercial frameworks, Omuojine argued that government-controlled pricing structures are unsustainable and stifle industry competition. He cautioned that forcing suppliers and refineries to distribute petroleum products below international market parity harms long-term investment.
According to Punch, Omuojine emphasized that coastal refineries require market-reflective prices to source domestic crude effectively. He maintained that regulatory frameworks must reward operational efficiency rather than compelling below-market sales to guarantee product availability.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Crude benchmarks move budgets, currencies and inflation in producer and importer countries alike. For economies such as Nigeria, where fuels dominate exports, production and refining decisions move the whole economy.
85.9% of Nigeria’s merchandise exports were fuels in 2025Countries in this story
Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
