The Federal Government, via the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), has issued nine licences for modular refineries, according to NMDPRA Chief Executive Farouk Ahmed. Speaking at the 2024 Oil Trading & Logistics Africa Downstream Energy Week in Lagos, Ahmed highlighted that these licences, granted under President Bola Tinubu’s administration, reflect Nigeria’s increasing refining capacity, further boosted by the recent start-up of the Dangote refinery.
Ahmed detailed the licences issued over the past year: nine to establish, seven to construct, and four to operate modular refineries. “Our refinery sector has been expanding rapidly with these licences,” he said, adding that the NMDPRA has streamlined regulations through stakeholder engagement to enhance regulatory clarity and business compliance.
He credited Tinubu’s reforms for transforming Nigeria’s oil and gas sector into a competitive investment hub, supporting the administration’s target of 3 million barrels of crude oil per day and 10 billion cubic feet of gas per day for domestic use. This, Ahmed noted, aims to make Nigeria a net exporter of petroleum products.
The Federal Government’s push for liberalisation is evident in ongoing policies to create a robust, investment-friendly market for petroleum products. Ahmed described the government’s commitment to “achieving a fully liberalised and mature market” and noted the potential of the Dangote refinery, which began producing Premium Motor Spirit in September 2024, to significantly improve fuel supply upon full licensing and completion.
To further support affordability, particularly of Liquefied Petroleum Gas (LPG), Ahmed announced NMDPRA’s plans to develop a domestic LPG pricing framework with major producers like Chevron, Mobil, and Nigeria LNG. He said, “NMDPRA will engage stakeholders in developing domestic LPG pricing to make the product readily available and affordable.”
Ahmed closed by outlining Nigeria’s gas sector capacity, which includes 16 billion cubic feet per day in processing, 5 billion in transportation, and 1.5 billion in distribution capacity, all of which are set to benefit from recent government policies and incentives.
Source: Punch