Niger Delta Youths: Modular Refineries Will Stop Oil Theft, Bunkering

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Ogoni Oil Spills

Oghenevwede Ohwovoriole in Abuja
Niger Delta youths under the umbrella of the Niger Delta Youths for Peace and Economic Development (NDYPED) has called on the federal government to fulfill its promise to legalise and implement the ‘modular refineries’ in the region as promised by Vice President Yemi Osinbajo.

The youths added that such would fast-track the country moving out from economic recession as well as tackle oil theft.

The group stated this in a statement signed by its National Coordinator, Mr. Jonathan Ikpidi, at the end of its meeting at the weekend.

According to the group, “The federal government urgently needs to fulfill its promise of legalising modular refineries and begin its implementation as it will help reduce the quantity of imported petroleum products.

‘’Today Kerosene is sold for over N400 per litre, but if modular refineries are in place, it could go for as low as N50 per litre. Even diesel that is sold for over N200 per litre can be sold for below N100 per litre.’’

The group also stated that the implementation would assist in reducing the current high rate of unemployment in the country, create a lot of income for both the citizens and the government as the federal government will have to register and licence companies that will operate these refineries and also pay tax to the government.

“It will also create job opportunities for our teaming youths, especially fresh Chemical and Petroleum graduates. This will be an avenue for them to research and experiment to improve on local refining of petroleum products.

 ‘’If the government fulfills its promise, it will also help it to increase its revenue base. The citizens will also benefit a lot as this will create employment for the youths, and aid research programme I refining petroleum products,” the group further said.

On the issue of security and peace in the Niger Delta, the group stated that the legalisation of modular refineries would bring peace and stability to the Niger Delta as most of the unemployed youths would be gainfully employed and therefore have no reason or excuse to be violent or carry out violent activities against the government or oil facilities.

The group added: “If this lofty idea is implemented, there will be peace and stability in the Niger Delta as most of the youths who are into crimes will be gainfully employed with a sense of belonging and responsibility. This crisis and violence in the region today is as a result of lack of development and unemployment.

‘’Oil theft and bunkering will become a thing of the past. If we must put an end to oil theft and bunkering, then we all must support this great idea of modular refineries as it will not only discourage oil theft and bunkering, but it will also bring innovations and ways of safe guarding our national treasury.

‘’We must let the federal government know that if this policy is legalised and implemented, Nigeria will be the major beneficiary just as the youths and the people of the Niger Delta will also greatly benefit from it.”

  • Admonisher

    This is a stupid idea. What is the ROI of modular refineries?. It is zero. The very idea that government should nurture an unprofitable industry just because it will “prevent oil theft” and “bunkering” is a return to crooked, corrupt, cowardly PDP governance structure.

    Just look at the brain dead project economics they are throwing around; kerosene at N50 and Diesel at N100 . These are figures pulled right out of ass without even some deeper thought.

    So the government should now find money to build 100 modular refineries to produce maybe two product streams at a net loss with serious environmental impact because we want to keep people from crime?

    Let the NNPC give them refined products to sell with good margin or pay them for doing nothing. The latter is culture in the region anyway and it is much better than modular refineries.

  • Sarah

    Govt should proceed but with abundant health CAUTION. Modular refineries are operated profitably all over the world. However these are safe and relatively efficient systems. A compact 20,000bpd unit starts from about US$10million for basic petrol, diesel, aviation kero, LPG and Residual Fuel Oil. For high quality products like unleaded fuel, ULS-Diesel and Jet A-1, the unit costs balloon to US$150million.
    It appears what the Niger Delta youth are talking about are ARTISANAL units that may not meet safety checks re toxic gas and liquid waste, that are sometimes carcinogenic. Readers will recall the tragic loss of lives in Zamfara when artisanal gold miners threw untreated waste mercury into local streams.