Governor Alex Otti’s Strategic Push for Abia State’s Modular Refinery: Economic and Social Imperatives
The Abia State Government, under Governor Alex Otti’s leadership, has prioritized the establishment of a 10,000-barrel-per-day modular refinery within the Abia Industrial and Innovation Park (AIIP) in Ukwa West Local Government Area. Approved by the Federal Government and developed by H.I.S. Refinery and Petrochemical Company Limited, this project is poised to transform the state’s economic landscape while addressing systemic social challenges. Construction is set to begin fully in May 2025, following the completion of land compensation and site preparation, marking a critical step toward industrialization and energy security.
Economic Justification
The refinery aligns with national efforts to combat Nigeria’s reliance on imported petroleum products and stabilize foreign exchange earnings. Governor Otti has emphasized that Nigeria’s current crude oil production of 1.4 million barrels per day falls short of its 2.2 million quota, exacerbating fiscal deficits and currency instability. By refining crude domestically, Abia aims to reduce import dependency, lower energy costs for local industries, and retain value within the state. The project is expected to generate 2,000 direct jobs and thousands more indirectly, revitalizing Ukwa West—a region historically marginalized despite its oil wealth. Additionally, the revival of capped oil wells in collaboration with ABTAN Energy Ltd, targeting an initial production of 20,000 barrels daily, could unlock an estimated 100 million barrels of reserves, further boosting state revenues and national output.
The refinery’s integration into the AIIP, a 1,933-hectare industrial hub, will attract ancillary industries such as petrochemicals and fertilizer production, fostering a diversified economy. Partnerships with NNPC Port Harcourt Refinery and NNPC Retail aim to ensure steady fuel supply across Abia, addressing chronic shortages and stabilizing prices. These initiatives are projected to elevate Abia’s GDP contribution, currently driven 39% by oil and gas, while expanding the manufacturing sector, which currently accounts for just 2%.
Social Justification
Governor Otti’s administration has confronted decades of neglect in Ukwa West, where oil-producing communities have endured infrastructural decay and exclusion from development benefits. The reconstruction of the 11.1km Obehie-Umudobia-Owaza road, flagged off alongside the refinery announcement, is designed to unlock the region’s economic potential by improving connectivity to ports and markets. The government has also pledged to restore electricity in Asa Land and expedite compensation to landowners, fostering community trust and minimizing disputes.
Security remains a cornerstone of the project. Illegal refining and oil theft, which have devastated ecosystems and livelihoods, are being aggressively tackled through collaborations with Operation Delta Safe. Governor Otti has branded illegal refiners as “enemies of the state,” urging joint task forces to dismantle illicit operations and secure pipelines. Enhanced surveillance around the AIIP and intelligence-sharing with security agencies aim to create a safe environment for investment, protecting both resources and residents. Social impact initiatives, including youth mentorship programs and SME support, seek to channel oil revenues into community development via ASOPADEC and the NDDC, ensuring inclusive growth.
A Prayer for Timely Progress
As construction nears, the people of Abia await the refinery’s completion with hopeful anticipation. Delays in similar projects often stem from bureaucratic inertia, funding gaps, or community disputes. However, Governor Otti’s proactive measures—such as securing federal approvals, completing environmental assessments, and engaging stakeholders—signal a commitment to avoiding such pitfalls.
May this refinery rise without hindrance, its timelines unwavering and its promises fulfilled. May the communities of Ukwa West witness a renaissance where jobs replace poverty, infrastructure bridges historical divides, and prosperity flows as steadily as the crude beneath their soil. May this project stand as a testament to visionary governance, where resource wealth transforms into shared progress, and Abia’s industrial ambitions ignite a brighter future for Nigeria.
In summary, the Abia modular refinery embodies more than economic ambition—it is a covenant with a long-neglected region, a pledge to harness oil for equitable development. Under Governor Otti’s stewardship, Abia is poised to redefine its narrative, proving that strategic investment and inclusive policies can turn challenges into enduring legacies.
Dr Chukwuemeka Ifegwu Eke writes from Yakubu Gowon University Nigeria
