NMDPRA says growing refining capacity could see all of Nigeria’s crude processed locally, with focus shifting to exporting higher-value petroleum products…..
The Federal Government has unveiled plans to reduce and eventually phase out Nigeria’s reliance on crude oil exports as the country ramps up domestic refining capacity in a bid to become Africa’s leading hub for refined petroleum products.
The Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Rabiu Umar, said the country’s expanding network of refineries presents an opportunity to retain more value within the economy by refining crude oil locally instead of exporting it in its raw form.
Speaking on Monday at the 49th Nigeria Annual International Conference and Exhibition organised by the Society of Petroleum Engineers (SPE) Nigeria Council in Lagos, Umar said ongoing investments in large-scale, private and modular refineries are reshaping the nation’s energy landscape.
According to him, Nigeria now has its highest refining capacity in history, with additional projects and expansion plans expected to come on stream in the coming years. He noted that if the country’s crude oil production reaches the targeted three million barrels per day, virtually all of it could be refined domestically.
Umar described the development as a major turning point for the petroleum industry, explaining that the country’s long-term objective is to export refined petroleum products instead of crude oil.
He said greater collaboration across the upstream, midstream and downstream segments of the industry would help maximise the economic value derived from Nigeria’s petroleum resources while strengthening the country’s refining and petrochemical sectors.
To support that ambition, the NMDPRA is working with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to enforce the Domestic Crude Supply Obligation, a policy designed to ensure local refineries receive adequate feedstock.
According to Umar, expanding refining capacity makes it increasingly difficult to justify exporting crude oil when the same resource can be processed locally to create jobs, generate more revenue and increase export earnings through higher-value products.
Beyond refining, he said the authority is prioritising energy security by maintaining strategic reserves of petroleum products across the country to minimise the impact of global supply disruptions and price volatility.
Rather than concentrating fuel supplies at coastal depots, Umar said the regulator is promoting storage closer to major consumption centres while developing protocols for the release of strategic reserves whenever market conditions require intervention.
He also disclosed that efforts are underway to eliminate infrastructure bottlenecks affecting pipelines, depots and storage terminals. Working alongside the Nigerian National Petroleum Company Limited (NNPC Ltd.), the authority aims to rehabilitate critical assets, improve operational integrity, reduce losses and ensure steady product distribution in line with the Petroleum Industry Act.
On the regulatory front, Umar said the NMDPRA is introducing reforms to make Nigeria’s petroleum industry more predictable and attractive to investors by simplifying licensing processes and reducing bureaucratic delays.
He stressed that regulators should focus on creating a transparent business environment where investors clearly understand requirements, timelines and regulatory expectations rather than acting solely as enforcement agencies.
The authority is also championing the creation of a regional petroleum products market by working with West African regulators and S&P Global Commodity Insights to establish common fuel specifications and a regional pricing benchmark.
Umar said harmonising standards across the region would facilitate cross-border trade in refined petroleum products, strengthen Nigeria’s position as a regional trading hub and enhance market transparency.
He urged industry stakeholders to prioritise effective implementation of existing reforms instead of continually introducing new policy frameworks.
Also speaking at the conference, the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Oritsemeyiwa Eyesan, said stronger collaboration among regulators, operators, investors and other stakeholders remains essential as the global energy industry undergoes rapid transformation.
She noted that geopolitical tensions, climate change, technological innovation, artificial intelligence and shifting investment patterns are redefining energy markets, making collaboration more important than ever.
In his remarks, Chairman of the SPE Nigeria Council, Francis Nwaochie, said Nigeria possesses the natural resources, technical expertise and growing gas economy required to remain competitive in the evolving global energy landscape.
He pointed to recent industry developments including the 2025 oil and gas licensing round, the Decade of Gas initiative and the Federal Government’s proposed ₦4 trillion bond to clear verified debts owed to power generation companies and gas suppliers as signs of increasing stability and renewed investor confidence.
Nwaochie added that sustained resilience in the sector should translate into higher crude production, accelerated gas commercialisation, improved ease of doing business, stronger regulatory coordination, deeper local content participation and greater access to long-term investment capital.
