The Managing Director of Rainoil Limited, Emmanuel Omuojine, has said modular refineries are key to strengthening Nigeria’s fuel security, warning that over-reliance on a single source of supply could expose the market to disruptions.
Omuojine spoke during a panel discussion at the recent NAEC energy conference in Lagos, where industry stakeholders examined market liberalisation, performance, public value and commercial opportunities.
He cautioned against depending on a single fuel supply source, describing the arrangement as fragile despite its apparent convenience.
“We don’t want a single supply that is sweet, but fragile. If there is any disruption, whether it is refinery maintenance, geopolitical tension, or logistics constraints, the whole market feels the shock immediately,” he said.
According to him, the future of refining in Nigeria and other West African countries lies in developing modular refineries strategically located close to demand centres to strengthen supply security and improve competition in the downstream petroleum sector.
He also called for market-driven pricing, arguing that government-controlled prices were not sustainable in the long term and could undermine competition among industry players.
“Pricing should not be fixed by the government, but should be market-driven. As a producer you want to sell at the best price, as a buyer you want the cheapest. Everyone should have the opportunity to compete,” he stated.
Omuojine explained that attempts to compel suppliers and refineries to sell petroleum products below international market parity in the interest of domestic supply could discourage investment and create artificial scarcity.
He further argued that coastal refineries should be allowed to pay competitive, market-reflective prices to secure domestic crude supplies rather than being compelled to sell products below prevailing market rates.
“Telling suppliers to sell at below-market price is not the most effective way to guarantee supply. The market must reward efficiency,” he added.
The discussion was held under the theme ‘Access to Assets: Empowering Players and Driving Growth’.