NMDPRA: 23 new refineries to add 850,000bpd capacity

• ₦287b invested in gas projects

By Grace Edet
The Federal Government has issued 23 refinery Licences to Establish (LTE) within the last four years following the enactment of the Petroleum Industry Act (PIA) 2021, as part of ongoing reforms to boost local refining capacity and energy sufficiency.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) disclosed this on Thursday at the maiden conference of the Energy Correspondents Association of Nigeria (ECAN) in Abuja, themed “Four Years of the PIA: Achievements, Gaps and the Road Ahead.”
Representing the Authority Chief Executive, Engr. Farouk Ahmed, NMDPRA’s Director, Legal Services, Tolurosho Joseph, said the new refinery projects, when completed and commissioned, would add over 850,000 barrels per stream day (bpsd) to Nigeria’s existing 1.125 million bpsd refining capacity.
He said: “Twenty-three refineries ‘Licences to Establish’ were issued from 2021 to date which, when constructed and commissioned, will add over 850,000bpsd refining capacity to the existing 1,125,000bpsd capacity.”
He also revealed that crude oil supply to domestic refineries increased from about 20,000 barrels per day (bpd) in 2023 to over 40,000bpd in 2025, a development enabled by the implementation of key provisions of the PIA.
Ahmed further highlighted improvements in refined product supply, noting that Premium Motor Spirit (PMS) availability grew significantly from 1.3 billion litres in 2024 to 3.8 billion litres in 2025, describing the outlook as “highly positive.”
On gas sector development, Ahmed disclosed that the Midstream and Downstream Gas Infrastructure Fund (MDGIF) has invested over ₦287 billion in various gas infrastructure projects involving 16 companies across 62 projects as of October 2025. He added that the Fund also catalysed an additional $500 million investment in gas infrastructure through a partnership with Afreximbank, aimed at expanding energy access and driving economic growth.
Key projects under this initiative include the UTM Offshore FLNG, NLNG Train 7, Ajaokuta–Kaduna–Kano (AKK) Gas Pipeline, OB3 Gas Pipeline, AIPCC Refinery, Indorama Fertiliser Plant, Greenville LNG & LCNG projects, Waltersmith Refinery Train 2, and Supertech Methanol Project.
Ahmed also announced that the Authority issued 10 gas distribution licences covering 692 kilometres of pipeline network with a combined capacity of 712 million standard cubic feet per day (MMscf/d) connecting 412 customers. The total investment value in the system, he said, was estimated at $639.07 million, with multiplier effects across energy, manufacturing, agriculture, and other sectors.
In addition, the NMDPRA developed Gas Trading and Settlement Regulations (2023) to establish a secure and efficient framework for gas trading and exchange platforms. This effort led to the award of Nigeria’s first-ever Gas Trading Exchange Licence to Jex Market Limited in May 2025.
According to Ahmed, prudent regulation by the Authority has ensured steady supply and product sufficiency within an average of 12 to 48 days, effectively eliminating nationwide fuel shortages and stimulating economic activities.
He added that the NMDPRA, in collaboration with S&P Global Platts, convened the first West African Product Reference Market Conference in May 2025, where stakeholders agreed to position Lagos as a sub-regional hub for product price referencing and market offtake.
Reflecting on the Authority’s progress since its establishment, Ahmed said: “In the last four years, whenever I have had the opportunity to speak about our achievements and challenges at the NMDPRA, it always fills me with pride because I am able to report tangible progress at each step of the journey.”
He added that the anniversary and conference provided an opportunity “to reflect on how far the PIA has changed the dynamics of regulation in Nigeria’s midstream and downstream sectors.”