By Zara Maisango
In a significant move to enhance Nigeria’s domestic refining capacity, the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has issued refining licenses to three companies for the establishment of new refineries in Edo, Delta, and Abia States.
The newly licensed refineries include Eghudu Refinery Ltd in Edo State, which received approval to construct a 100,000 barrels per day (bpd) facility; MB Refinery and Petrochemicals Company Ltd in Delta State, granted a license for a 30,000 bpd refinery; and HIS Refining and Petrochemical Company Ltd in Abia State, which secured a license for a 10,000 bpd refinery.
The NMDPRA, in an official statement, revealed that the licenses were personally presented by the Authority Chief Executive, Engr. Farouk Ahmed, to the managing directors of the respective companies. “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 statement read.
This development comes as Nigeria continues its push to reduce dependency on imported refined petroleum products. Despite having nine operational refineries with a combined refining capacity of 974,500 bpd—including the 650,000 bpd Dangote Petroleum Refinery—many of these facilities remain underutilized due to operational challenges.
With these new licenses, industry stakeholders are optimistic about Nigeria’s ability to meet local fuel demand and potentially reduce the burden of fuel importation. The coming months will reveal how quickly these projects can come on stream and contribute to stabilizing the nation’s petroleum sector.