Nigeria Expands Refinery Network with Approval for 10,000-Barrel Plant in Delta State
The recent approval for the establishment of a 10,000-barrel-per-day refinery in Delta State aligns with the Nigerian government’s strategic efforts to address the country’s longstanding energy sector challenges. Despite being a major crude oil producer, Nigeria faces the paradox of exporting crude oil while heavily relying on imports for refined petroleum products. This imbalance has significant economic, social, and security implications.
To mitigate these challenges, the government is actively increasing domestic refining capacity. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) announced the approval for the refinery construction license to MRO Energy Limited through a statement on its X (formerly Twitter) page. This marks a significant step forward in expanding Nigeria’s refining infrastructure.
This development follows closely on the heels of a recent partnership agreement between Claridge Petroleum Company Ltd, Oasis Petrochemical Products Limited, and Afrintech to construct a 50,000-barrel refinery in Akwa Ibom State.
Rising Refinery Count
With this latest approval, Nigeria’s refinery count has risen to 11, encompassing both modular and conventional refineries. This expansion significantly enhances the nation’s refining capacity. The Nigerian government has set ambitious targets, aiming for an output exceeding two million barrels per day and 62 million barrels per month.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) recently reported 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. This projection is facilitated by the crude oil delivery initiative, which aims to improve refinery operational efficiency by ensuring a consistent and reliable crude oil supply.
Growth of Private Refineries
Driven by government policies that encourage private sector investment, Nigeria is witnessing a surge in privately owned refineries. The most prominent example is the Dangote Refinery, boasting an impressive installed capacity of 650,000 bpd, the largest single-train refinery globally.
As new refineries come online and existing facilities undergo rehabilitation, Nigeria’s refining capacity is poised for substantial growth in the coming years. This expansion will significantly enhance the nation’s self-sufficiency in refined petroleum products.
