So, the government is looking for a smart way to end fuel importation as well as sporadic shortages.

They have decided to back smaller refineries, which hitherto could only operate illegally.

One of those modular refineries, currently under construction in Kwale, Delta State, is expected to come on stream in the third quarter of this year.

The refinery, which is being promoted by Pillar Oil Limited, Omsa Limited and Astek Limited, will process 7,000 barrels per stream day of crude oil when completed, according to a statement by the Department of Petroleum Resources.

It said the 7,000bpsd of crude, equivalent to 350,000 tonnes of crude oil annually, would come from Pillar facility in Kwale.

"The facility is expected to come on stream in the third quarter 2018 and the DPR has granted it requisite approvals.

"These include approval to relocate plant and approval to construct plant in line with our effective regulatory process and in alignment with government’s aspiration to stimulate economic growth," the agency said on Wednesday.

The main products from the refinery will include naphtha, kerosene, diesel and fuel oil fractions.

According to the statement, the refinery facility includes: storage depot for crude oil and a loading terminal.