Nigeria’s Refinery Expansion: Progress Amid Persistent Challenges
The Federal Government of Nigeria, through the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), has granted a new licence for the construction of a refinery, signalling a renewed push to bolster the nation’s refining capacity. The approval, announced on Tuesday, has been awarded to MRO Energy Limited for the establishment of a 10,000-barrels-per-stream-day refinery at Imode, in Ughelli, Delta State.
This marks the second such approval in as many months. In November, Process Design and Development Limited secured a licence to construct a 27,000-barrels-per-day refinery in Dole-Wure, Akko Local Government Area of Gombe State. These developments highlight a growing effort to reduce Nigeria’s dependence on imported refined petroleum products.
Sharing the news on its official X (formerly Twitter) account, NMDPRA confirmed that its Chief Executive, Farouk Ahmed, had formally presented the licence to MRO Energy Limited, describing the project as a step forward in expanding Nigeria’s refining portfolio.
With this addition, the country now hosts approximately 11 modular and conventional refineries, including those still under construction. Earlier in January, the Petroleum Products Retail Outlets Owners Association of Nigeria announced plans to collaborate with private partners to establish a 50,000-barrels-per-day refinery, further enhancing Nigeria’s refining potential.
Yet, despite these strides, challenges persist. Many of the nation’s existing refineries remain moribund, operating far below capacity or lying dormant altogether. This inefficiency has stifled Nigeria’s ability to meet its domestic demand, with the Nigerian Upstream Petroleum Regulatory Commission targeting 770,500 barrels of oil per day for local refineries—a goal that remains aspirational.
The approvals underscore the government’s intent to revitalise the downstream sector. However, significant structural reforms, investment in operational efficiency, and stringent oversight will be crucial for these ventures to yield tangible benefits for the Nigerian economy.
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