Nigerian Governor Oborevwori: Operational Refineries Key to Resolving Foreign Exchange Crisis in 2024

Delta State Governor Sheriff Oborevwori stated that making refineries in Nigeria operational again would save the nation significant foreign exchange spent on fuel importation. Oborevwori made this statement when he received the Senate Ad-hoc Committee on Turnaround Maintenance of Nigerian Refineries, led by Senator Ifeanyi Ubah, at the Government House in Asaba.

Governor Oborevwori emphasized that when Nigeria stops importing petroleum products, there will be less pressure on the naira against the dollar. He urged the Federal Government to expedite action in revitalizing the nation's refineries, expressing confidence that the Senate committee will deliver a good job. "When the refineries are operational, the issue of fuel importation will be a thing of the past, as it is causing a lot of challenges with foreign exchange," Oborevwori said.

Senator Ifeanyi Ubah, the head of the Senate Ad-hoc Committee, assured that the refineries would be up and running before the end of 2024. The committee also plans to address issues surrounding crude oil theft and the implementation of the Petroleum Industry Act (PIA). Ubah said the committee was in Delta State on an oversight function to address the rehabilitation of Nigeria's refineries, crude oil theft, and maximizing the output of the country's crude oil, as well as supporting issues related to the upstream, downstream, Niger Delta affairs, and host communities.

Why this matters: The functionality of Nigeria's refineries has significant implications for the country's economy and foreign exchange reserves. By reducing the need for imported refined petroleum products, operational refineries could help alleviate the pressure on Nigeria's foreign exchange and potentially stabilize the value of the naira against major currencies like the dollar.

Governor Oborevwori pledged the support of Delta State for the Senate committee to carry out its oversight work. He charged the Niger Delta Development Commission (NDDC) to complete all ongoing and abandoned projects in the region for the benefit of the people. President Bola Tinubu, represented by the Minister of Steel Development, assured Nigerians of better days ahead and said his administration has developed a holistic plan for the overall development of the oil-rich Niger Delta region.

Key Takeaways

• Operational refineries can reduce Nigeria's fuel import costs and naira-dollar pressure.
• Senate committee aims to revive refineries, address crude oil theft, and maximize output.
• Delta State governor pledges support for Senate committee's oversight work on refineries.
• NDDC urged to complete ongoing and abandoned projects in the Niger Delta region.
• Tinubu administration promises a holistic plan for the development of the Niger Delta.