By Ese Ufuoma
The Federal Government and industry stakeholders have thrown their weight behind the modular refinery being built by Ebenco Global Link Limited in Koko, Delta State, calling it a critical instrument in the fight against crude theft, pipeline vandalism and illicit refining.
During a recent inspection of the site, Senator Heineken Lokpobiri, Minister of State for Petroleum Resources (Oil), described the 30,000 barrel per day refinery as “a strong indicator of renewed investor confidence in indigenous energy infrastructure.” He added that once completed, the facility could reduce the appeal of illegal refining by offering a legitimate, scalable alternative within the national oil value chain.
At the inspection, Dr. Ebenezer Oluwagbemiga, Ebenco’s Chief Executive Officer, walked reporters through the company’s phased approach. Operations will kick off with an initial throughput of 5,000 barrels per day, but the vision extends far beyond numbers. The refinery is designed not only to process petroleum products but also to generate jobs, deepen local content, and significantly undercut the incentives that have long driven illegal bunkering.
Meanwhile, Dr. Peter Akindeju, the company’s Management Consultant, emphasised the ingenuity behind the modular, batch-based design. He called it a “rare leap” in indigenous engineering, praising its flexibility, faster deployment, and adaptability, qualities that conventional, large-scale refineries often lack.
Meanwhile, academic support came from Dr. Omonigho Otanocha of the Federal University of Petroleum Resources Effurun (FUPRE), who commended the project as proof that Nigerian firms can build complex midstream and downstream infrastructure, reducing reliance on imports.
For Nigeria, illegal refining and pipeline vandalism have long been more than criminal acts; they are systemic problems that erode revenue, destroy environments and create fuel shortages.
The Ebenco refinery offers a different path. By building a fully local, modular facility, the company and, by extension, the government hopes to:
*Provide a legal, regulated outlet for crude, reducing the profit motive for theft and illicit refining.
*Boost domestic refining capacity, lowering reliance on imported fuel and easing supply shortages.
*Create jobs and deepen local content from fabrication to operations and supply chain services.
*Offer a replicable model. Modular refineries are easier to build than giant complexes and could be constructed in multiple locations.
According to Lokpobiri, the government is ready to back more modular refinery projects, potentially offering credit facilities to encourage former illegal refinery operators to transition into legitimate businesses.
Although not everyone is fully convinced, critics point out a broader challenge facing modular refineries in Nigeria: product quality. Some experts contend that many existing modular/topping plants lack the capacity for full treatment and “on spec” fuel production, especially in terms of sulphur content and other environmental/pollution standards. This raises important questions: even if Ebenco and its peers succeed in building capacity, will their products meet national and international standards, or will regulatory, environmental and compliance issues dampen their impact?
Additionally, modular refineries need stable crude supply, reliable infrastructure, and consistent regulation. Without these, the “scalable alternative” to illegal refining could instead become another source of instability.
Ebenco’s modular refinery project is already more than a promise; it carries real government backing, serious technical ambition and a potentially transformative vision for Nigeria’s downstream sector.
Transforming that hope into long term impact means navigating technical, regulatory and social challenges. If Ebenco succeeds, the refinery could become a blueprint for tackling illegal refining, boosting refining capacity and creating local energy industry jobs. If it fails, the sector and affected communities may just return to square one.
The coming months matter. The world and all of Nigeria will be watching.