PANDEF urges Tinubu to boost modular refineries in Niger Delta

The Pan Niger Delta Forum (PANDEF) has called on President Bola Tinubu to intensify support for the development of modular refineries in the Niger Delta, as part of efforts to expand domestic refining capacity and deliver tangible benefits to host communities.

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It urged the federal government to review and activate the proposed Modular Refinery Development Fund to accelerate local refining and promote inclusive growth across oil-producing areas.

Chairperson of the forum, Godknows Igali, made the call during a press briefing in Abuja on Friday.

PANDEF is the apex socio-political body of Nigeria’s South-South geopolitical zone,

Mr Igali said recent policy shifts in the oil and gas sector provide an opportunity for the government to establish a robust programme that encourages modular refinery investments in the Niger Delta.

“These changes present another opportunity to call on the federal government to put in place a robust programme to promote the building of modular refineries in the Niger Delta.

“In 2018, the government had committed itself to setting up a Modular Refinery Development Fund, similar to the Solid Minerals Development Fund. This must be urgently looked into and encouraged as a way of carrying more host communities along in implementing the Petroleum Industry Act (PIA), creating more economic activities in the Niger Delta and ensuring that the sector has greater stability for the overall good of the country,” he said.

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The Modular Refinery Development Fund (MRDF) was conceived by the federal government as a financing mechanism to encourage private-sector investment in small- to medium-scale refineries, particularly in crude oil–producing areas such as the Niger Delta.

Announced around 2018, the fund was designed to mirror the Solid Minerals Development Fund by providing low-interest, long-term loans and technical support to indigenous investors seeking to establish modular refineries.

Its core objective was to expand domestic refining capacity, reduce dependence on imported petroleum products, and integrate host communities into the formal oil and gas value chain.

Historically, Nigeria’s refining capacity has been constrained despite being Africa’s largest crude oil producer.

For decades, state-owned refineries operated far below installed capacity, resulting in chronic fuel shortages and heavy reliance on imports.

In the Niger Delta, this gap contributed to the proliferation of illegal artisanal refineries, which, while meeting some local fuel demand, caused severe environmental degradation and revenue losses. The introduction of modular refineries was therefore also a strategic response to formalise refining activities, curb illegal operations, and provide alternative livelihoods.

In recent years, reforms under the Petroleum Industry Act and downstream sector deregulation have renewed interest in domestic refining. Several modular refineries in the Niger Delta have received licences from the Nigerian Midstream and Downstream Petroleum Regulatory Authority, with a handful already operational and others at various stages of construction.

However, progress has been uneven, largely due to financing constraints, infrastructure deficits, and uncertainty around crude supply arrangements.

Tinubu’s reforms

Mr Igali commended President Tinubu’s reforms in the oil and gas sector and urged sustained implementation.

He said consistent reforms are essential to maintaining the industry’s contribution to national economic growth and positioning Nigeria as a major player in the global energy landscape.

“We, the people of the Niger Delta, are greatly impressed with these changes and hope that the holistic reforms will be sustained. This is the only way to ensure that the oil and gas industry continues to play the paramount role which it has been doing for the common economic interest of all Nigerians and places Nigeria as a dominant player in the global energy architecture,” he said.

Mr Igali also expressed the hope that, as reforms deepen, more qualified professionals from the Niger Delta would be appointed to senior roles within the Nigerian National Petroleum Corporation (NNPC) and across the petroleum industry, noting the region’s wealth of experienced manpower.

“PANDEF again take this opportunity to express the hope that, as Mr President will continue to follow through with these reforms in the sector, more sons and daughters of the Niger Delta from where the country has the highest number of experienced professionals in the sector, would be brought into other top positions within the Nigerian National Petroleum Corporation {NNPC} and the industry at large,” he stated.

The group welcomed the appointments of Saidu Mohammed as Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and Oritsemeyiwa Eyesan as Chief Executive Officer of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), describing the choices as positive steps for effective sector governance.

Beyond industry reforms, Mr Igali urged the federal government to sustain and expand environmental remediation efforts in the Niger Delta.

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He stressed the need for annual budgetary provisions to clean up degraded environments across the region, going beyond the Ogoni clean-up to ensure comprehensive and lasting restoration.

“Furthermore, we look forward to sustained efforts of the federal government in putting in place a robust programme for the environmental remediation of the Niger Delta. The federal government must go beyond Ogoni Clean-up to ensure that there is a budgetary provision on an annual basis to clean up the damaged environments of the Niger Delta in a sustained manner,” he stated.

Reaffirming PANDEF’s commitment, Mr Igali said the organisation would continue to work closely with federal and state governments to mobilise host communities and foster an enabling environment for the oil and gas sector to play its critical role in national development.

“Finally, as the apex body representing host communities, PANDEF reaffirms its commitment to working closely with federal and state governments in mobilising our people to ensure that the right enabling environment exists for this important sector to continue to play its deserved role,” he said.