The Federal Executive Council (FEC) on Wednesday signed a $1.4 billion contract to rehab the Warri and Kaduna refineries.
At the Warri refinery, approximately $897 million will be allocated and Kaduna Refinery, $586 million will be allocated for its . rehabilitation
It is expected to help refineries return to production, ensuring that they can meet national oil demands.
Timipre Sylva, the minister of state for petroleum, addressed the 38th virtual FEC meeting, saying that the rehabilitation will be done in three phases, the first of which will last 18 months, the second of which will last 24 months, and the third of which will last 44 months.
According to Mele Kyari, a managing director for Nigeria National Petroleum Corporation, NNPC. in June, rehabilitation efforts at the refineries will help Nigeria become a “hub of petroleum products and supply” in tandem with other initiatives such as the Dangote Refinery.
He noted that because the flow of petroleum is coming from Europe today, it will soon be reversed to another direction.
Mr Kyari remarked that the refineries being rehabilitated will allow Nigeria to be a legitimate supplier to the rest of West Africa, as well as many other parts of the world.
He said that it will change the dynamics of global petroleum supply, as the flow will go from Europe today and then will go the opposite direction.
The media has widely reported that the Nigerian National Petroleum Corporation (NNPC) has begun the rehabilitation of the Port Harcourt refinery in May, 2021.
The Federal Executive council also recently approved $1.5 billion for the rehabilitation of the Port Harcourt refinery in Nigeria, which was chaired by the country’s president, Muhammadu Buhari.