Crude Oil Refining or Petroleum Product Importation: Which Is Economical for Nigeria

CRUDE OIL REFINING OR PETROLEUM PRODUCTS IMPORTATION: WHICH IS ECONOMICAL FOR NIGERIA?

ABSTRACT: One of the most crucial challenges facing Nigeria is being able to meet the energy need of the energy hungry populace; the exponential population growth makes it even more challenging. The approach adopted to meeting this need has impacted severely on the economy of the nation as reflected in the year-on-year economic figures. This can be attributed to her choice of net importer of petroleum products status to the much more economic domestic refining option. This paper analyses the best economic option between refining crude oil and importing the products in Nigeria, at the end making probable suggestions.

TABLE OF CONTENT

ABBRECIATIONS

1. NTRODUCTION.................................................................................................4

2. CRUDE OIL REFINING AND PETROLEUM IMPORTATION

IN NIGERIA .........................................................................................................5

2.1 Overview ...............................................................................................................5

2.2 Challenges of Petroleum Product Refining in Nigeria ..........................................6

3. CRUDE OIL REFINING AND PETROLEUM PRODUCTS

ECONOMICS ........................................................................................................8

3.1 The Economics of Crude oil Refining ....................................................................8

3.2 The Economics of Petroleum Products....................................................................9

4. CRUDE OIL REFINING, PETROLEUM PRODUCTS IMPORTATION

AND THE ECONOMY.........................................................................................10

5. CONCLUSION......................................................................................................11

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