The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) recently issued licenses to three oil companies for the construction of new refineries, expected to add 140,000 barrels per day (bpd) to the country’s refining capacity.
This move aligns with the government’s broader efforts to reduce reliance on imported petroleum products and enhance domestic refining.
In parallel, the Nigerian government has been investing in the rehabilitation of state-owned refineries in Port Harcourt, Warri, and Kaduna, which have long suffered from neglect and underperformance.
The Nigerian National Petroleum Company (NNPC) is spearheading these refurbishments to restore full operational capacity, aiming to improve energy security and reduce the financial burden of fuel subsidies.
3 new refineries set to boost Nigeria’s capacity
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has issued licenses for the construction of three new refineries, adding 140,000 barrels per day (bpd) to Nigeria’s refining capacity.
The newly licensed refineries include:
- Eghudu Refinery Limited – a 100,000 bpd refinery in Edo State
- MB Refinery and Petrochemicals Company Limited – a 30,000 bpd refinery in Delta State
- HIS Refining and Petrochemical Company Ltd – a 10,000 bpd refinery in Abia State
These facilities will be located in Edo, Delta, and Abia states, further strengthening the country’s domestic petroleum processing capabilities.
Nigeria has been at the forefront of Africa’s refining capacity expansion, contributing to 71% of the region’s growth in this sector.
A key driver of this expansion is the Dangote Refinery, which began operations in 2024 with a 650,000 bpd capacity. This refinery is expected to reduce dependence on imported refined petroleum products and enhance energy security.
As competition intensifies in Nigeria’s petroleum industry, the resurgence of local refineries is expected to drive price reductions due to increased supply.
The growing number of refining facilities has triggered a competitive market environment, potentially lowering Premium Motor Spirit (PMS) prices and making fuel more affordable for consumers.
With more locally refined petroleum products, the country is poised to achieve better quality control, improved energy security, and reduced dependence on imported fuel.
These efforts, along with the growing number of operational modular refineries, reflect a strategic push to achieve self-sufficiency in petroleum refining and reduce reliance on imports.
