Perhaps, the scarcity of foreign exchange and the attendant strains on the economy is the biggest battle confronting the current administration.
This is because there is hardly any analysis of the pervading economic downturn in the country that doesn’t single out the catastrophe in the foreign exchange market as the underlying factor for the current chaos.
There seemed to be a consensus that once the government can get the existing refineries working again, and the pressure by importers on foreign exchange for fuel import is reduced significantly, the heat in the FX market will subside and the economy will pick up again.
As Port Harcourt, Dangote Refineries Begin Production
This perhaps is the reason why so much hope is placed on the rehabilitation of the Port Harcourt refinery and the readiness of the Dangote refinery to start producing petrol.
No doubt, Nigerians hold high expectations for crude oil production by the Port Harcourt refineries, anticipating enhanced energy security and a reduction in the country’s dependence on imported refined products. They hope that successful operations at the Port Harcourt refineries will lead to increased domestic production, thereby stabilising fuel prices and ensuring a more reliable supply chain. The anticipation is not just for economic gains but also for the potential to create jobs and boost local industries, fostering a more sustainable and self-reliant economy.
Similarly, Nigerians eagerly anticipate the contribution of Dangote refineries to crude oil production. Expectations are centred on the refinery’s capacity to significantly reduce the need for fuel imports, ultimately curbing foreign exchange expenditures and bolstering the nation’s economic resilience. Additionally, there is hope that Dangote refineries will introduce innovative practices and technology, setting new standards for efficiency and environmental sustainability in the oil and gas sector. Nigerians look to these refineries as beacons of progress, aspiring to witness a transformative impact on both the economy and daily lives through increased local refining capacity.
Poor Road Infrastructure as an Albatross
As much as Nigerians nursed the hope of an eldorado as these two major refineries roared to life, the question is how will they distribute their products given the sorry state of the Nigerian roads.
The Nigerian Union of Petroleum and Natural Gas Workers (NUPENG) in November last year threatened to withdraw services over the government’s alleged unwillingness to fix the nation’s deplorable roads.
The threat followed a major accident on Independence Day that claimed the lives of Petroleum Tanker Drivers (PTDs) and other citizens on the Ologbo end of Warri-Benin highway.
According to the union, Nigerians are being wasted daily through the “callousness, insensitivity and negligence of leaders whom citizens entrust their lives to.”
NUPENG, in a statement, recalled that the union had at several times fixed bad portions to make them passable for members and other road users.
The truth is the deplorable state of road infrastructure in Nigeria, particularly around Port Harcourt refineries and Dangote refineries, is nothing short of an ominous threat to fuel distribution. These roads, scarred by neglect and riddled with potholes, embody a harrowing journey for fuel transporters.
The emotional toll surfaces as these critical arteries crumble under the weight of inefficiency, rendering the transportation of fuel a perilous undertaking. The heartache intensifies as delays mount, costs soar, and the prospect of fuel shortages looms over communities that depend on these vital resources.
It’s a poignant narrative of how dilapidated infrastructure not only jeopardises economic progress but also plunges the nation into the throes of uncertainty and despair.
Just last week, President Bola Tinubu noted that concerning infrastructure development in Rivers State, he had heard the cries of prominent Rivers sons, with particular reference to the Eleme Junction-Onne axis of the East-West Road, linking the Port Harcourt Refinery. On this, the President said the FCT Minister, Nyesom Wike, is a strong adviser and would follow up on the issue for prompt action.
Despite the billions of naira earmarked for the construction of the East-West Road in the South-South region, which crosses through many states, the project has failed to be realised while the road remains a death trap.
President Olusegun Obasanjo’s administration awarded the 188km East-West Road, from Warri in Delta State to Oron and Eket in Akwa Ibom State through Kaima in Bayelsa State, and Ahoada, Port Harcourt to Ogoni in Rivers State.
According to reports, the road, which was conceptualised in the early 70s to boost the economy and easy movement in the oil reach Niger Delta region, cuts across Edo, Delta, Bayelsa, Rivers, Akwa-Ibom and Cross River states, but the road currently ends in Oron, Akwa-Ibom State as the last phase that will cross the bridge to Calabar in Cross River State has not yet been constructed.
The East-West Road contract was said to have been awarded in four sections and the Eleme-Onne axis section of the road has become a nightmare for road users.
Reports say that sections I and II of the roads, covering Warri to Kaima and Onne Port Junction to Eket township have been completed, but Section IIIA, covering Port Harcourt/Eleme Junction to Onne Port Junction, which is just about 15 kilometres, has been neglected, despite lofty promises by each administration through the ministers of Works and Niger Delta Affairs.
Analysts said the importance of the collapsed section of the road is underscored by the fact it plays host to over 300 oil and gas companies, making it a huge industrial hub that generates a lot of wealth and resources for the federal and state governments.
The huge oil and gas activities in that section of the road, as well as other activities involving heavy-duty trucks plying the road daily, have worsened the state of the road, making it a nightmare for commuters. Several lives have also been lost, with residents and road users often sleeping along the road due to its impassibility. A journey of less than 30 minutes now takes about seven to 10 hours or even more.
East-West Road, An Eyesore
Today, the East-West road in Nigeria is plagued by severe deterioration, marked by potholes and inadequate maintenance, hindering smooth transportation and impeding economic activities in the region.
An oil industry analyst who spoke with THISDAY on condition of anonymity raised questions bordering on the conditions of these roads.
“As Nigerians await Dangote and Port Harcourt refineries to roll out products, are there infrastructure like roads for the distribution and evacuation of the products?”
He pointed out that as of today, Port Harcourt-Aba road, up to Enugu is bad, and so is Port Harcourt-Owerri road. Port Harcourt to Warri is also in shambles because of the collapse of the East-West road. The Warri-Benin and to Auchi has completely failed too.
In Lagos, where Dangote Refinery is located, the Lekki-Epe road is not in its best form either, and oil industry analysts said the gain of local oil production may be eroded by the problem of poor infrastructure in Lagos and in other parts of the country.
To fully realise the gains of local oil production, there is a need for the Tinubu administration to prioritise road infrastructure in 2024. It is an issue that should be placed above any political consideration. Definitely, the time to act is now.
