The Nigerian government is expanding its refinery network with the recent approval for the establishment of a 10,000-barrel refinery in Delta State.
- Nigerian government approves the establishment of a 10,000-barrel refinery in Delta State
- Approval given to MRO Energy Limited for the construction of the refinery in Delta State
- Nigeria aims to increase domestic refining capacity to tackle economic and security implications of exporting crude oil
This decision to issue licenses to new refineries aligns with the country’s strategic efforts to address long-standing challenges in its energy sector.
Despite being one of the world’s largest crude oil producers, Nigeria faces the paradox of exporting crude oil while importing a significant portion of refined petroleum products.
This imbalance has far-reaching economic, social, and security implications that the government aims to tackle by increasing domestic refining capacity.
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The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) announced the approval of the refinery construction license through an official statement on its X (formerly Twitter) page.
The approval was given to MRO Energy Limited, an energy company for the construction of a 10,000 Barrels Per Stream Day Refinery at Imode In Ughelli, Delta State
This development follows closely on the heels of a recent partnership agreement confirmed by the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN).
The agreement involves Claridge Petroleum Company Ltd, Oasis Petrochemical Products Limited, and Afrintech to construct a 50,000-barrel refinery in Akwa Ibom, located in Nigeria’s South-South region.
Nigeria’s refinery count rises
With this addition, Nigeria’s refinery count has officially risen to 11, including both modular and regular refineries, significantly boosting the nation’s refining capacity.
The Nigerian government has set ambitious targets, aiming for an output of over two million barrels per day and 62 million barrels per month.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) recently announced that government-owned refineries, the Dangote Petroleum Refinery, and eight other domestic refineries are projected to process 770,500 barrels of oil equivalent per day (bpd) from January to June 2025.
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According to the NUPRC, nine refineries will benefit from the crude oil delivery initiative, which aims to improve the operational efficiency of Nigeria’s refineries by ensuring a consistent and reliable supply of crude oil for processing.
Nigeria is experiencing a rise in privately owned refineries, driven by government policies that encourage private sector investment. The most prominent of these is the Dangote Refinery, which boasts an impressive installed capacity of 650,000 barrels per day (bpd), making it the largest single-train refinery globally.
As new refineries come online and existing facilities undergo rehabilitation, Nigeria’s refinery count and overall refining capacity are expected to grow significantly in the coming years, bolstering the nation’s self-sufficiency in refined petroleum products.
