ABSTRACT

This chapter examines the benefits of local, innovative refineries and argues that they be legitimized and regulated. Failing to harness the homegrown solution for petroleum refining also encourages environmental pollution in the Niger Delta that is caused by government security agents when they destroy artisanal refineries. Since the Nigerian government is advocating increased participation in agricultural activities, harnessing the decentralized homegrown solution for petroleum refining complements increased local agricultural productivity. The homegrown solution for petroleum refining in the Niger Delta can be harnessed for petroleum refining in Nigeria. Prior to Nigeria’s independence in 1960, about 80% of its labor force was engaged in agricultural activities. Agricultural products accounted for 85% of Nigeria’s foreign exchange earnings. The early development of the petroleum industry in Nigeria can be traced to 1908, when the German Bitumen Corporation, started petroleum exploration activities in the Araromi area of western Nigeria.