Toba Owojaiye reporting
Abuja, Nigeria
The Federal Government, through the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), has approved licenses for the construction of three new refineries to boost Nigeria’s domestic refining capacity.
According to the regulatory agency’s statement on Friday, these new facilities will collectively contribute 140,000 barrels per day (bpd) to the nation’s refining output. Eghudu Refinery Ltd in Edo State received approval for a 100,000 bpd facility, MB Refinery and Petrochemicals Company Ltd in Delta State secured a 30,000 bpd license, while HIS Refining and Petrochemical Company Ltd in Abia State was granted a 10,000 bpd refining license.
Truth Live News gathered that the august announcement follows earlier approvals this year, including a 10,000 bpd refinery for MRO Energy Limited in Ughelli, Delta State, and a 27,000 bpd refinery for Process Design and Development Limited in Gombe State. This expansion brings the total number of modular and conventional refineries in the country to about 14, signaling a strategic push to reduce Nigeria’s dependence on imported petroleum products.
While the approvals highlight the government’s commitment to increasing local refining capacity, the reality of Nigeria’s refining industry presents a more complex picture. Despite the construction of new refineries, many existing ones remain either non-operational or functioning below capacity.
One major challenge is the inadequate allocation of crude oil to local refiners. Industry players have repeatedly accused regulatory authorities of favoring fuel importation over local refining, making it difficult for domestic refiners to operate at optimal levels. The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) recently called for refinery privatization, arguing that government inefficiencies continue to hinder the sector’s growth.
Additionally, even with the highly anticipated operations of the Dangote Refinery and the Nigerian National Petroleum Company Limited (NNPCL) refineries, the government has admitted that these facilities are still not meeting 50% of the nation’s fuel demand.
While the approval of new refinery licenses offers hope for future self-sufficiency in fuel production, Nigeria’s refining sector still faces hurdles, including funding constraints, regulatory bottlenecks, and the need for a stable supply of crude oil to ensure these new projects translate into tangible economic benefits.