The main risks include regulation, crude supply, operational uptime, FX exposure, debt, valuation, broker access, and long-term changes in oil demand. A landmark asset can still be a risky investment at the wrong price or structure.
Political and regulatory risk
Policy changes, import rules, subsidies, taxes, and licensing conditions can affect refinery economics and investor outcomes.
Operational risk
Large refining assets depend on uptime, maintenance discipline, commissioning quality, and safe operations.
Crude supply risk
Feedstock pricing, supply reliability, and domestic crude availability may influence margins and production levels.
FX and currency risk
Revenue, debt, crude costs, and investor returns may be exposed to naira, dollar, and cross-border transfer risks.
Oil demand and peak oil risk
Long-term fuel demand may shift as efficiency, policy, electric mobility, and global energy transition trends evolve.
Valuation risk
Even strong companies can be poor investments if shares are priced above realistic earnings and cash-flow expectations.