Do Nigerians have refineries?
Four refineries as mentioned above. Maximum theoretical capacity (i.e., rated capacity) is 445,000 barrels per day (not 445 million barrels) of oil products. Actual refining capacity is far less. Refining in Nigeria currently is not profit-making largely because of the government’s price controls (price caps) on refined products. This results in refinery owners having no incentive to pay for maintenance, which is one reason why actual capacity has gradually slipped further and further below the rated capacity. Domestic demand for refined products is around 600,000 bpd. The shortfall is largely covered through import of refined products, but a substantial volume is also smuggled in and sold at black-market rates.
