The Federal Government, through the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), has approved licenses for the construction of three new refineries, adding a total refining capacity of 140,000 barrels per day (bpd) to Nigeria’s domestic output.
In a statement on its official X handle on Friday, the NMDPRA announced that Eghudu Refinery Ltd in Edo State received a license to construct a 100,000 bpd refinery, while MB Refinery and Petrochemicals Company Ltd in Delta State was granted approval for a 30,000 bpd facility. Additionally, HIS Refining and Petrochemical Company Ltd secured a 10,000 bpd refinery license for operations in Abia State.
The Authority Chief Executive, Engr. Farouk Ahmed, formally presented the licenses to the managing directors of the respective companies.
This approval follows earlier licenses issued this year, including a 10,000 bpd refinery in Imode, Ughelli, Delta State, granted to MRO Energy Limited. Two months ago, the authority also approved a 27,000 bpd refinery to be built by Process Design and Development Limited in Dole-Wure, Akko, Gombe State.
With these new additions, Nigeria now has around 14 modular and regular refineries. However, despite the growing number of licensed refineries, many remain non-operational or underutilized due to challenges such as crude oil allocation.
Local refiners have recently accused regulators of failing to allocate sufficient crude oil to domestic refineries, instead prioritizing the issuance of licenses for petrol imports. This issue continues to hinder the full production potential of Nigeria’s refining sector.
