Nigeria’s Idle Fuel Depots Face Revival as Oil Marketers Push for Urgent Action
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The Nigerian National Petroleum Company Limited (NNPCL) has drawn cautious optimism from oil marketers following its recent efforts to revive the Port Harcourt and Warri refineries. Marketers have now called on the national oil firm to expedite the rehabilitation of 21 idle fuel depots nationwide, stressing the urgent need to restore these critical facilities.
The depots, strategically located across the country, were designed to streamline petroleum product distribution, reducing reliance on costly and hazardous road transportation. However, decades of neglect, vandalism, and a shift to fuel imports have left most of these facilities moribund, forcing the NNPCL to rely on private depots.
Chinedu Ukadike, National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), highlighted the pressing need for action, especially as the recently revived refineries in Port Harcourt and Warri ramp up operations.
“With the commencement of refinery operations, these depots must be restored to full functionality,” Ukadike said. “The depots were built to receive products directly from the refineries via pipelines, which is far more cost-effective and safer than road transportation. Reviving them would help reduce fuel costs, operational hazards, and road wear.”
The depots, located in cities such as Aba, Benin, Kano, and Yola, form part of a 5,120km network of pipelines installed by the former Nigerian National Petroleum Corporation between 1976 and 1989. This system was intended to ensure seamless distribution of products nationwide. However, vandalism and years of poor maintenance have left these pipelines largely inoperable.
Investigations reveal that NNPCL has spent significant sums maintaining its infrastructure and outsourcing services to private depot owners. In its 2023 financial report, the company disclosed expenditures of ₦434.65 billion on pipeline and depot maintenance and an additional ₦44.27 billion in throughput charges paid to private depot operators.
Experts argue that the situation underscores the need for systemic reforms and infrastructure investment. Professor Emeritus Wumi Iledare, an oil and gas analyst, pointed to the inefficiency of road transportation for petroleum products. “Nobody should be moving petroleum products by road across states in this day and age,” he remarked. “A functional pipeline network and rail system would make product distribution cheaper, safer, and more efficient.”
The NNPCL has acknowledged the need for comprehensive rehabilitation of its pipeline and depot infrastructure, confirming that preliminary work is underway to restore the 21 depots. The Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) has expressed confidence in the plan, noting that staff deployments to the Port Harcourt depot signal imminent progress.
However, industry stakeholders caution that successful rehabilitation will require robust security measures to prevent vandalism and community engagement to foster a sense of ownership. “The pipelines should be buried to reduce vandalism, and communities must be incentivised to protect this critical infrastructure,” Iledare advised.
Oil marketers and analysts alike view the depot revival as a crucial step toward stabilising Nigeria’s downstream petroleum sector. With functional refineries and depots, the country could reduce reliance on imported fuel, lower costs for consumers, and position itself for sustained economic growth.
For now, the industry waits to see if the NNPCL can overcome decades of systemic challenges and deliver on its promise to restore these vital assets.
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