The Federal Government, via the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), has approved licenses for the construction of three new refineries.
In a post on its official X account on Friday, the NMDPRA announced that these new facilities will enhance Nigeria’s domestic refining capacity by adding 140,000 barrels per day.
The licenses include a 100,000 bpd refinery awarded to Eghudu Refinery Ltd in Edo State, a 30,000 bpd license granted to MB Refinery and Petrochemicals Company Ltd in Delta State, and a 10,000 bpd license for HIS Refining and Petrochemical Company Ltd in Abia State.
The Authority Chief Executive, Engr. Farouk Ahmed, presented the License to Construct a 100,000 bpd refinery to Eghudu Refinery Ltd in Edo State, a License to Establish a 30,000 bpd refinery to MB Refinery and Petrochemicals Company Ltd in Delta State, and a License to Establish a 10,000 bpd refinery to HIS Refining and Petrochemical Company Ltd. in Abia State.
These licenses, which will collectively add 140,000 barrels per day to Nigeria’s refining capacity, were presented to the managing directors of the companies,” the announcement stated.Earlier this year, the authority approved a license for MRO Energy Limited to build a 10,000 barrels per stream day refinery in Imode, Ughelli, Delta State.
This follows a prior license granted to Process Design and Development Limited to construct a new 27,000 barrels per day refinery in Dole-Wure, Akko area of Gombe State.With these new developments, Nigeria now boasts around 14 modular and traditional refineries, further expanding its refining capabilities. Additionally, the Petroleum Products Retail Outlets Owners Association of Nigeria has announced plans in collaboration with partners to establish a new refinery with an initial capacity of 50,000 barrels per day.
However, despite this increase in the number of refineries, many remain inactive, with several not operating at full capacity or efficiency.
A significant concern is the allocation of crude oil; local refiners have recently criticized the regulator for not providing enough crude oil to domestic refineries, which hinders their ability to reach full production potential.
They have also alleged that the regulators prioritize issuing licenses for petrol imports over supporting local refining initiatives.
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