The Federal Government has approved the construction of three new refineries, adding 140,000 barrels per day (bpd) to Nigeria’s domestic refining capacity.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) made this announcement on Friday through its official X handle. The agency said the licenses were issued to three companies in Edo, Delta, and Abia states.
According to the statement, Eghudu Refinery Ltd in Edo State received approval to build a 100,000 bpd refinery, while MB Refinery and Petrochemicals Company Ltd in Delta State got a license for a 30,000 bpd refinery. HIS Refining and Petrochemical Company Ltd in Abia State was granted a license to construct a 10,000 bpd refinery.
“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,” the statement read.
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More Refinery Approvals This Year
This is not the first time the government has approved refinery licenses this year. Earlier, the NMDPRA granted a license to MRO Energy Limited to construct a 10,000 barrels per stream day (bpsd) refinery in Ughelli, Delta State. In addition, two months ago, Process Design and Development Limited received approval to establish and construct a 27,000 bpd refinery in Dole-Wure, Akko, Gombe State.
With the latest approvals, Nigeria now has about 14 modular and regular refineries aimed at boosting domestic refining and reducing dependence on imported petroleum products.
Challenges Facing Local Refining
Despite the increase in refinery approvals, many existing refineries remain inactive or operate below full capacity. A major challenge facing local refiners is the allocation of crude oil. Some refiners have accused regulatory agencies of failing to provide enough crude for local refining, limiting their ability to meet production targets.
A refinery operator complained, “The government keeps issuing refinery licenses, but without adequate crude allocation, these refineries will struggle to function. Instead, the regulators focus on issuing licenses for fuel importation.”
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has also raised concerns about the state of the country’s refining sector. Earlier this year, PETROAN announced a partnership to establish a new 50,000 bpd refinery, aiming to boost local refining. However, industry experts warn that without proper crude allocation and infrastructure support, new refineries may face the same challenges as existing ones.