THE Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has issued refining licences to three companies to build new refineries in Abia, Delta, and Edo States.
This development is expected to improve local refining and close the importation shortfall gaps by major petroleum marketers in the country.
The NMPDRA revealed on its official x handle that it granted a 100,000 barrels per day (bpd) refining license to Eghudu Refinery Limited in Edo State, a 30,000 bpd license to MB Refinery and Petrochemicals Company Limited in Delta State, and approval for a 10,000 bpd refinery to HIS Refining and Petrochemical Company Limited in Abia State.
“These licenses, which would add 140,000 barrels per day to Nigeria’s domestic refining capacity, were presented to the MDs of the companies,” the regulatory authority said in an official statement issued on its X handle.
The ICIR reported on February 20 that the NMDPRA expressed concern over the insufficient output of Nigerian-owned refineries, noting that local production supplies less than 50 percent of the country’s fuel consumption.
The regulatory authority said the significant shortfall is being filled through the importation of refined petroleum products in line with the 2021 Petroleum Industry Act (PIA) provisions.
NMDPRA Chief Executive, Farouk Ahmed, however, stated that no oil company owning a refinery had imported petroleum products into the country in 2024.
He explained that the oil marketing companies (OMCs) are the ones importing to enable them to bridge the shortfall gap and avert petroleum scarcity across the country.
Nanji is an investigative journalist with the ICIR. She has years of experience in reporting and broadcasting human angle stories, gender inequalities, minority stories, and human rights issues. She has documented sexual war crimes in armed conflict, sex for grades in Nigerian Universities, harmful traditional practices and human trafficking.