Challenges and Prospects of Converting Nigeria Illegal Refineries to Modular Refineries

Abstract

The sub-optimum conditions of Nigeria conventional refineries remains a drastic setback since all other industries are intertwined with its outputs. It is noted that amidst all other glaring contributing factors as listed in the study, insufficient large capital funds on the part of private investors and vandalization of pipelines seems to be conspicuous. The stolen crude oil got from the pipelines serve as the beginning point for illegal refining. Asides the issue of quality control of products, their sub-standard operation also affects Nigerians environmentally and economically. The more the Government invest time and resources to stop their operation; the more they spring up like mushrooms. This paper reflects the authors view on achieving a win-win scenario. The upgrading of existing illegal refineries at strategic locations within the country to standard modular refineries seems to be a more feasible and friendly approach. The issue of channeling of intermediate products can be solved through the introduction of clusters, where final products of one become raw material for the other. Intermediate products can also be channeled to Government owned conventional refineries for further processing. From analysis, it is deduced that overall design capacities from clusters have optimum effect on the intermediate environment in terms of meeting demand. Extensive operational training on crude oil refining will help buttress the point while Transfer of Knowledge from official vendors to Nigerian Engineers on how to fabricate modular refining units locally will also help to reduce overall cost.