The Oil and Gas Downstream Industry still remains largely dependent on imported petroleum products due to Nigeria’s weak refinery production. The Nigerian refineries have operated at a combined average capacity utilisation of below 20% in the last five years. The Federal Government of Nigeria still retains price controls on petrol in a bid to protect consumers from volatilities in the crude oil market. This has a dire fiscal impact, considering the outlook on the global crude oil market, which implies higher prices of crude oil. Nigeria’s fuel subsidy bill accumulated to exponentially in 2017, with outstanding claims yet to be paid.
