The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has announced that the Kaduna Refinery project is now 81% completed. The update was shared by the authority’s Chief Executive Officer, Farouk Ahmed, during an industry event on Tuesday.
He explained that while progress on the refinery is promising, the condition of the connecting pipeline must also be considered, as it plays a vital role in the refinery’s operations. He said both elements are key to the project’s full success.
Plan to reduce imports and strengthen the naira
Ahmed noted that the refinery upgrade is part of a broader plan to reduce Nigeria’s dependence on imported fuel. By producing more fuel locally, the country hopes to save foreign exchange and better manage the impacts of global oil price changes on its economy.
He also said that this move is expected to reduce the effects of global price fluctuations and help improve economic stability, especially in light of falling global crude prices, which have reduced Nigeria’s earnings from oil exports.
More refineries in focus
Along with the Kaduna Refinery, the NMDPRA is overseeing the upgrade of other major plants like the Warri and Port Harcourt refineries. The authority is also working with both modular refinery operators and large-scale projects such as the Dangote Refinery, which is already contributing to local fuel supply.
According to the agency, only about 58% of Nigeria’s licensed refineries are currently operating, due to challenges such as poor infrastructure and delays in crude supply. Nigeria currently produces around 1.4 million barrels of crude oil per day.
Expected impact on the economy
The Kaduna Refinery project is expected to help reduce the pressure on the country’s foreign exchange reserves, which are often used to import refined petroleum products. When completed, the refinery should also support efforts to stabilise the naira and reduce inflation caused by high fuel prices.
Background on the project
The upgrade of the Kaduna Refinery and Petrochemicals Company (KRPC) officially began in late 2024. Earlier this year, the Nigerian National Petroleum Company Limited (NNPC Ltd.) confirmed that both Kaduna and the 150,000 barrels per day Port Harcourt refinery are undergoing major work to meet international standards.
As the Kaduna project moves closer to completion, many are hopeful that it will play a key role in boosting local refining capacity and bringing more stability to Nigeria’s fuel market.
