Nigeria Expands Refining Capacity with New Refineries and Upgrades

Nigeria Expands Refining Capacity with New Refineries and Upgrades

Nigeria is making significant progress in boosting its crude oil refining capacity through new refinery projects and the rehabilitation of existing state-owned facilities.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has issued licenses for three new refineries, expected to add 140,000 barrels per day (bpd) to the country’s refining capacity.

The newly licensed refineries include:

  • Eghudu Refinery Limited (100,000 bpd) – Edo State
  • MB Refinery and Petrochemicals Company Limited (30,000 bpd) – Delta State
  • HIS Refining and Petrochemical Company Ltd (10,000 bpd) – Abia State

These projects align with Nigeria’s goal of reducing dependence on imported petroleum products and enhancing local refining capabilities.

In addition to new projects, the Nigerian government is revamping the long-neglected state-owned refineries in Port Harcourt, Warri, and Kaduna.

The Nigerian National Petroleum Company (NNPC) is spearheading these efforts to restore full operational capacity, improve energy security, and reduce the financial burden of fuel subsidies.

Nigeria has led Africa’s refining expansion, contributing to 71% of regional growth. A key player in this effort is the 650,000 bpd Dangote Refinery, which began operations in 2024.

The refinery is expected to significantly cut reliance on imported refined petroleum products and stabilize fuel prices.

The expansion of local refining capacity is set to create a competitive market, potentially lowering fuel prices and improving energy security.

As Nigeria moves toward self-sufficiency in petroleum refining, consumers may benefit from better price stability and fuel quality, reducing the nation’s reliance on imports.

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