The Federal Government, through the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), has approved licences for the construction of three new refineries, a move expected to boost Nigeria’s domestic refining capacity by 140,000 barrels per day (bpd).
Announcing the development on Friday via its official X handle, the NMDPRA disclosed that the new refinery licences were granted to three companies across different states.
A 100,000 bpd refinery licence was awarded to Eghudu Refinery Ltd in Edo State, while MB Refinery and Petrochemicals Company Ltd in Delta State received a 30,000 bpd refinery licence. Additionally, HIS Refining and Petrochemical Company Ltd in Abia State was granted a 10,000 bpd refinl I’m
“The Authority Chief Executive, Engr. Farouk Ahmed, presented a 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 would add 140,000 barrels per day to Nigeria’s domestic refining capacity, were presented to the MDs of the companies,” the agency stated.
This latest approval follows a series of refinery licence grants in recent months. Earlier this year, MRO Energy Limited received approval for the construction of a 10,000 barrels per stream day refinery in Imode, Ughelli, Delta State. Similarly, two months ago, the NMDPRA granted Process Design and Development Limited a licence to establish and construct a 27,000 bpd refinery in Dole-Wure, Akko, Gombe State.
With these recent approvals, Nigeria now has approximately 14 modular and conventional refineries, contributing to the country’s refining capacity.
Additionally, the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) earlier this year announced a partnership to develop a 50,000 bpd refinery, further expanding the sector.
Despite the increase in refinery licences, many of Nigeria’s existing refineries remain inactive or underutilized. A key issue affecting local refiners is crude oil allocation, with industry players alleging that regulators prioritize petrol importation over supplying crude to domestic refineries.
Recently, local refiners accused regulatory authorities of failing to allocate sufficient crude oil, thereby limiting production and preventing them from operating at full capacity.
While the latest approvals signal a push towards refining self-sufficiency, experts argue that without proper crude supply allocation and refinery optimization, Nigeria may continue to rely on imported petroleum products.