Nigerian Government Grants 47 Refinery Licenses to Boost Domestic Production and Energy Security

In a significant move to enhance Nigeria’s refining capacity and reduce reliance on imported petroleum products, the Federal Government has issued 47 Licenses to Establish (LTE) and 30 Licenses to Construct (LTC) refineries within the past year. This initiative, disclosed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), aims to improve the domestic supply of refined products and support economic growth through increased energy security. The licenses collectively represent nearly three million barrels per day (bpd) in refining capacity.

The breakdown of the new licenses includes 47 LTEs, which together account for 1.75 million bpd, and 30 LTCs, which add 1.23 million bpd. Currently, only four plants with LTCs are operational, producing a total of 27,000 bpd. Notable projects among the LTC initiatives include the Dangote Petroleum Refinery, which has a capacity of 650,000 bpd, and smaller plants such as AIPCC Energy’s 30,000 bpd facility and Waltersmith’s second train refinery with 5,000 bpd capacity.

As of now, Nigeria’s refineries produce a total of 1.12 million bpd, including six private and four public refineries. Dangote’s single-train plant leads with a refining capacity of 650,000 bpd. The public refineries, operated by the Nigerian National Petroleum Company (NNPC), contribute 445,000 bpd from plants in Port Harcourt, Warri, and Kaduna. These efforts demonstrate the government’s commitment to reducing dependency on imported refined products and enhancing the nation’s energy infrastructure.

In addition to the new refinery licenses, ongoing efforts are being made to expand Nigeria’s refining capabilities, with modular refineries under construction in Edo, Delta, and Abia states. These refineries are expected to add another 140,000 bpd to Nigeria’s refining capacity, further supporting job creation and strengthening energy security.

Source: The sun