FG Grants Approval to Float New Refinery as Dangote Crashes Fuel Price

• The federal government has given the Abia state administration permission to construct a modular refinery within the state
• The refinery would be built by H.I.S Refining inside the proposed Abia Innovation Incubation Park in Owaza
• The governor of Abia State reaffirmed commitment to ending the previous administration's decades-long disregard for the oil-bearing area

Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.

Abia State Governor Alex Otti said the state administration has received permission from the federal government to build a modular refinery in the state.

This was said by Otti yesterday when he officially opened the reconstruction of the 11.1-kilometer, 67-year-old Obehe-Umudobia-Owaza road in the state's Ukwa West local government area, Leadership reported.

According to Otti, H.I.S. Refining and Petrochemical Company Limited would construct the refinery, which will be located inside the projected Abia Innovation Incubation Park in Owaza.

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He promised that the flag-off ceremony for the reconstruction of the Umuzike-Obokwe-Ngwaiyiekwe road, which is also in the region and was included in the 2025 Budget, will take place shortly.

He instructed Ikechukwu, the commissioner for Power and Public Utilities, to make sure the pledge was carried out, saying that Asaland will have power back before the end of this month.

Otti stated that he had listened to the public's request for portable water and that the problem would soon be resolved because he had declared a state of emergency for the service.

He reiterated his administration's resolve to eliminate the previous administration's years-long disregard for the oil-bearing region and to guarantee its fair distribution of resources.

His words:

“We officially declare that the era of neglect of Ukwa and all the communities within the land is over. Ukwa shall no longer be a forgotten place.”

“Your land will yield forth its best fruits and your barns shall never be empty again. You will enjoy the riches of the environment and the oil in your land shall bring you boundless prosperity.”

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In a remark, a leader in the area and a former secretary to the state government, Ralph Egbu, commended the governor for “his landmark achievements in less than two years in office”.

Earlier, the Federal Government of Nigeria, through the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), issued a licence for the construction of new refineries to three Nigerian companies.

NMDPRA, in a statement shared on X, said the three refineries will contribute 140,000 barrels per day (bpd) to Nigeria’s domestic refining capacity.

The companies approved to build the refineries are Eghudu Refinery Limited, MB Refinery and Petrochemicals Company Limited and HIS Refining and Petrochemical Company Limited.

NMDPRA stated that Eghudu Refinery Limited will have a production capacity of 100,000 barrels per day (bpd), MB Refinery and Petrochemicals Company Limited will produce 30,000 bpd, while HIS Refining and Petrochemical Company Limited will establish a 10,000 bpd facility.

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Dangote Refinery crashes petrol prices again

Legit.ng reported that on Thursday, March 13, 2025, the Dangote Refinery escalated the petrol price war by quietly lowering the PMS price at its loading gantry. The giant refinery crashed petrol prices from N825 per litre to N815.

The development came as the plant introduced a new pricing structure on Thursday, March 13, 2025.

According to reports, marketers expressed optimism at the new price as they have begun to boycott private depots and start sourcing products directly from the Dangote Refinery.

Source: Legit.ng