Nigeria’s oil industry is poised for growth as petroleum marketers prepare to launch a new 50,000 barrels per day (bpd) refinery.
- Nigeria’s oil industry is set for growth with the launch of a new 50,000 bpd refinery
- Nigeria is making significant progress in rehabilitating government-owned refineries and promoting modular refineries
- The agreement to establish a new refinery in Nigeria is between Nigerian petroleum marketers and three oil companies
According to Billy Gillis-Harry, National President of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), the refinery will be developed in collaboration with three oil companies and located in Akwa Ibom State.
Nigeria’s oil industry sees improvement
As Africa’s largest oil producer, Nigeria has long faced the challenge of being a leading crude oil exporter while heavily dependent on imported refined products.
To address this imbalance and enhance its oil production capacity, the country is making refinery development a key focus of its energy strategy.
This strategy focuses on building new refineries, modernizing existing facilities, and fostering partnerships to enhance efficiency and achieve self-sufficiency in the petroleum sector.
Significant progress can be seen in the rehabilitation of government-owned refineries like Warri and Port Harcourt and the promotion of modular refineries nationwide.
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The Dangote Refinery has emerged as a transformative force in Nigeria’s economy, positioning itself as a major player in the global petroleum industry.
Between April and September 2024, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) reported that the refinery supplied 489,500 MT of Automotive Gas Oil (AGO) and 29,000 MT of Jet A1 fuel.
These were distributed via 17 AGO shipments to Lagos, 6 to Warri, 2 to Port Harcourt, and 1 to Calabar, highlighting its key role in domestic fuel supply.
The Dangote Refinery has also commenced exporting Premium Motor Spirit (PMS) to several African countries, including Ghana, Angola, South Africa, Cameroon, and Nigeria. This marks a significant milestone in enhancing regional fuel supply and reducing dependency on external sources.
PETROAN confirms deal
According to The Punch, Billy Gillis-Harry, National President of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), confirmed a partnership agreement with Claridge Petroleum Company Ltd, Oasis Petrochemical Products Limited, and Afrintech.
This collaboration aims to ensure Nigerians have access to affordable fuel, further strengthening the refinery’s role in addressing local and regional energy needs.
“The deal is that we have requested for them to not import for us but to set up a refinery in Nigeria and they have agreed to that. So within the period that the process will be, they can be importing only diesel for us and maybe base oil; but PMS, we must have to do that locally,” Gillis-Harry told The Punch
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This new arrangement effectively nullifies the group’s earlier agreement on petroleum importation.
In November last year, PETROAN had announced plans to import and sell Premium Motor Spirit (PMS) at prices below those offered by the Dangote Refinery and the Nigerian National Petroleum Company Limited (NNPC).
However, Gillis-Harry revealed that the importation plan has been scrapped in favor of establishing a new refinery, aligning with the association’s commitment to boosting local production and ensuring affordable fuel for Nigerians.
