The Nigeria Midstream and Downstream Petroleum Resources Authority (NMDPRA) has granted refining licenses to three companies, paving the way for the construction of new refineries in Abia, Delta, and Edo States. The licensed refineries include Eghudu Refinery Ltd, which will have a refining capacity of 100,000 barrels per day (bpd) in Edo State. MB Refinery and Petrochemicals Company Ltd will establish a 30,000 bpd refinery in Delta State, while HIS Refining and Petrochemical Company Ltd will build a 10,000 bpd refinery in Abia State.
These new refineries will add a combined refining capacity of 140,000 barrels per day to Nigeria’s existing infrastructure. This development is expected to enhance the country’s refining capabilities and reduce reliance on imported petroleum products.
The statement read: “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.”
Data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) showed that Nigeria has nine operational refineries, which include the Dangote Petroleum Refinery and Petrochemicals FZE, the Warri Refinery and Petrochemical Company, the Kaduna Refinery and Petrochemical Company, and the Port Harcourt Refinery Company Limited. In addition to these new refineries, Nigeria is also home to several other refineries, including Aradel Refinery, OPAC Refineries, Waltersmith Refinery and Petrochemical Company, Duport Midstream Company Limited, and the Edo Refinery and Petrochemical Company. These refineries have a combined refining capacity of 974,500 barrels per day.
However, despite this significant refining capacity, most of the refineries in Nigeria are not operating at full capacity. This has resulted in a shortage of locally refined petroleum products, forcing the country to rely on imports. The NMDPRA has estimated that the nine refineries in Nigeria would require a combined daily crude supply of 770,500 barrels per day and 123,480,500 barrels in the first half of 2025 to operate at full capacity.
