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Abuja, Nigeria — Nigeria plans to resume local refining of crude oil in early August, national petroleum authorities announced Monday.

The resumption would end years of idleness at Nigeria’s state-owned refineries, and analysts say that if successfully implemented, it would lower fuel prices.

The Nigerian National Petroleum Company made the announcement while addressing an emergency session at the National Assembly. Lawmakers called the session to interrogate central bank authorities, the national economic management team and the NNPC about the country’s economic standing.

The chief executive officer of the NNPC, Mele Kyari, said one of the two Port Harcourt refineries in the oil-rich Niger Delta region will begin operations in about two weeks.

He said the other one will come into operation by the end of the year and allow Nigeria to begin exporting refined oil.

“We’re very optimistic that by December this country will be a net exporter,” he said, “that is [in] combination of production coming from us and the Dangote refinery and other smaller producing companies.”

The Dangote refinery is a privately owned facility being built near Lagos.

Nigeria’s minister of state of petroleum resources, Heineken Lokpobiri, voiced optimism about the impact of the revived refineries.

“The easiest way for Nigeria to come out of its economic problems is through the oil and gas sector,” Lokpobiri said. “As a sector, we have a clear plan to gradually ramp up production. Right now, we have a clear plan to see how we can get 2 million barrels and more.”

This is not the first time officials have announced the resumption of domestic oil refining.

They made similar announcements in December and March. On Monday, authorities said unforeseen technical difficulties hampered previous resumption dates.

All four government-owned refineries, which can process about 450,000 barrels of crude per day, have been moribund for years, forcing the country to rely on imports to meet its petroleum needs, estimated at 66 million liters (17.4 million gallons) per day.

Oil industry analyst Faith Nwadishi voiced doubts the refineries will operate again.

“I’m just keeping my fingers crossed and trying to be very optimistic about this because it will go a long way in reducing the hardship and perhaps also reduce the pump price … especially,” Nwadishi said. “But being somebody who’s in the sector, I become a little bit skeptical. We have an allocation of about 445,000 [barrels per day] for domestic consumption, which, if properly refined, we’ll have about 70 million liters. That covers our daily consumption.”

The Nigerian oil industry has been hampered in recent years by theft and corruption. On Monday, the Nigeria Extractive Industries Transparency Initiative said about 140,000 barrels of crude oil were lost to theft every day between 2009 and 2018.
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