Oil
Modular refineries vital for fuel security, says Rainoil
Rainoil Managing Director Emmanuel Omuojine has urged Nigeria to embrace modular refineries and market-driven pricing to secure its downstream petroleum sector.
Key points
- Over-reliance on a single fuel supply source exposes Nigeria to immediate market shocks.
- Modular refineries located near demand centres can strengthen regional supply security.
- Government-controlled pricing is unsustainable and discourages investment in the sector.
What happened
Speaking at the recent Nigerian Association of Energy Correspondents conference in Lagos, Rainoil Limited Managing Director Emmanuel Omuojine called for the strategic expansion of modular refineries across Nigeria. According to Punch Newspapers, Omuojine warned that relying on a single source of fuel supply creates a fragile market vulnerable to logistical constraints, geopolitical tensions, and refinery maintenance issues.
Why it matters
With fuel exports accounting for 85.9 percent of merchandise exports in Nigeria as of 2025, according to World Bank figures, stability in the downstream petroleum sector remains critical. Omuojine argued that decentralized, demand-centre-focused refining capacity is essential to prevent nationwide shortages resulting from centralized supply disruptions.
What comes next
Beyond refining infrastructure, Omuojine advocated for fully market-driven pricing rather than government-controlled rates. He stated that forcing suppliers and refineries to sell below international market parity to support domestic supply undermines fair competition and discourages long-term investment in Nigerian refining capacity.
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.
