FG Issues 47 Refinery Licences to Boost Local Petroleum Production
The Federal Government, through the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), has issued 47 refinery licenses to private operators across the country.
The licenses, which include nine Licenses to Establish (LTEs), seven Licenses to Construct (LTCs), and four Licenses to Operate (LTOs), are expected to significantly increase Nigeria’s refining capacity and foster private sector investment in the midstream and downstream segments of the petroleum industry.
Among the notable projects greenlit by the NMDPRA are three high-capacity refineries set to add a combined 140,000 barrels per day (bpd) to the national refining output. These include Eghudu Refinery Ltd in Edo State with a 100,000 bpd capacity, MB Refinery and Petrochemicals Company Ltd in Delta State with 30,000 bpd, and HIS Refining and Petrochemical Company Ltd in Abia State with 10,000 bpd.
“This is a significant step toward energy security and economic diversification,” said Farouk Ahmed, CEO of the NMDPRA. “With the issuance of these licenses, we are laying the groundwork for a self-sustaining petroleum industry, capable of meeting domestic demand and positioning Nigeria as a net exporter of refined petroleum products.”
The regulator has also revised and consolidated its licensing procedures to attract over $3 billion in new investments. The move is expected to create thousands of direct and indirect jobs, while also improving energy availability and reducing the strain on Nigeria’s foreign reserves caused by fuel imports.
The initiative aligns with the government’s broader strategic goal of ramping up crude oil production to three million barrels per day and increasing domestic gas utilization to 10 billion standard cubic feet per day. These efforts are seen as critical to unlocking the full potential of Nigeria’s oil and gas sector, which has long grappled with underutilization of existing refineries and infrastructural challenges.
Industry stakeholders have welcomed the development, describing it as a turning point for the sector
