As of 2025, Nigeria’s strategic expansion of local refining capacities is poised to significantly influence the nation’s Gross Domestic Product (GDP). The operationalisation of both private and Nigerian National Petroleum Corporation Limited (NNPCL)-owned refineries marks a transformative period for Nigeria’s oil and gas sector.
Operational Refineries in Nigeria
Nigeria’s refining landscape in 2025 comprises several key facilities:
- Dangote Refinery: Located in Lekki, Lagos State, is a privately-owned refinery boasts a capacity of 650,000 barrels per day (bpd). It commenced full operations 2024 and is expected to reach it’s maximum capacity by early 2025.
- Edo Refinery and Petrochemical Company: Situated in Edo State, this refinery operates with a capacity of 6,000 bpd. It was commissioned in phases, with full operations starting in 2024.
- Duport Midstream Refinery: Also located in Edo State, this 2,500 bpd refinery was completed in 2022 and began production in 2023.
- Waltersmith Refinery: Located in Imo State, this refinery has a capacity of 5,000 bpd and commenced operations in 2020.
- OPAC Refinery: Situated in Delta State, this facility has a capacity of 10,000 bpd.
- Port Harcourt Refining Company: Comprising two plants in Rivers State, the old refinery has a capacity of 60,000 bpd, and the new refinery adds 150,000 bpd. It re-opened in 2024 after a litany of rehabilitation efforts.
- Warri Refinery and Petrochemical Company: Located in Delta State, this refinery has a capacity of 125,000 bpd, late last year the NNPC announced it’s reopening.
Economic Implications
The expansion of local refining is anticipated to have several positive effects on Nigeria’s economy:
- GDP Growth: The Dangote Refinery alone is projected to raise Nigeria’s GDP to $322 billion by 2025.
- Foreign Exchange Savings: By reducing dependence on imported refined petroleum products, Nigeria is expected to save substantial foreign exchange, improving the nation’s balance of payments.
- Employment Generation: The operational refineries are creating numerous job opportunities, stimulating local economies and contributing to poverty reduction.
- Industrial Growth: The availability of locally refined petroleum products is fostering the growth of related industries, including petrochemicals and manufacturing, further diversifying the economy.
Challenges and Considerations
Despite these advancements, certain challenges persist:
- Fuel Subsidy Policies: The continuation or removal of fuel subsidies remains a contentious issue. The introduction of the Dangote Refinery has reignited debates over petrol subsidies, with implications for pricing and inflation.
- Operational Efficiency: Ensuring consistent crude oil supply and maintaining infrastructure are critical to sustaining refinery operations and achieving projected economic benefits.
The operationalisation of local refineries in Nigeria by 2025 represents a significant stride towards economic self-sufficiency. By bolstering GDP, conserving foreign exchange, generating employment, and stimulating industrial growth, these refineries are set to play a pivotal role in Nigeria’s economic landscape. Addressing existing challenges will be essential to fully realise these potential benefits.
