The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has issued licences to three oil companies to construct new refineries, increasing Nigeria’s refining capacity by 140,000 barrels per day (bpd).
This move aligns with the federal government’s push for energy self-sufficiency and aims to reduce reliance on imported petroleum products.
New Refinery Licences and Locations
In a statement on X (formerly Twitter), NMDPRA confirmed the issuance of licences, specifying the locations and capacities of the approved refineries:
- Eghudu Refinery Limited: Licensed to construct a 100,000 bpd refinery in Edo State.
- MB Refinery and Petrochemicals Company Limited: Granted approval for a 30,000 bpd facility in Delta State.
- HIS Refining and Petrochemical Company Limited: Licensed to establish a 10,000 bpd refinery in Abia State.
The licences were officially presented by NMDPRA’s Chief Executive, Engr. Farouk Ahmed, to the Managing Directors of the recipient companies.
Strengthening Nigeria’s Refining Sector
Nigeria has long struggled with fuel import dependency, despite being Africa’s largest oil producer. These new refineries add to the growing list of operational and planned refining projects aimed at meeting domestic demand.
They join existing refineries such as:
- Dangote Petroleum Refinery and Petrochemicals FZE
- Warri Refinery and Petrochemical Company
- Kaduna Refinery and Petrochemical Company
- Port Harcourt Refinery Company Limited
- Aradel Refinery
- OPAC Refineries
- Waltersmith Refinery and Petrochemical Company
- Duport Midstream Company Limited
- Edo Refinery and Petrochemical Company (licensed in August 2024 and now fully operational)
With these additions, Nigeria is moving towards its goal of reducing fuel imports, stabilising local supply, and strengthening energy security.
The Bigger Picture: Nigeria’s Refining Future
The NMDPRA’s latest approvals signal continued government efforts to encourage local refining investments. As more modular refineries become operational, the country’s dependence on imported petrol, diesel, and other fuels is expected to decline.
Experts say that with full-scale operations of these refineries, Nigerians could see lower fuel prices and reduced pressure on foreign exchange reserves, which have been heavily strained by petroleum product imports.
While challenges such as funding, crude oil availability, and infrastructure gaps remain, the recent licensing approvals mark another step towards achieving a self-sufficient and globally competitive refining industry in Nigeria.
