Regulator says fertiliser imports will end as private-sector expansion positions Nigeria as a hub for value-added oil and gas products
Nigeria is set to commence the export of urea by 2028 as part of efforts to position the country as a major hub for value-added oil and gas products, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has said.
The authority also disclosed that Nigeria would soon begin large-scale fertiliser exports, driven by expanding private-sector investments in the midstream segment of the petroleum industry.
The Chief Executive of NMDPRA, Saidu Mohammed, made the disclosure on Wednesday while responding to questions from journalists during a facility tour at Indorama Eleme Fertiliser and Chemicals Limited in Eleme Local Government Area of Rivers State.
The visit formed part of Mohammed’s three-day inspection tour of selected midstream and downstream oil and gas facilities across the state.
According to him, Nigeria is deliberately working towards becoming a regional centre for value-added petroleum products, stressing that the midstream sector remains critical to achieving that goal but requires substantial investment.
Mohammed said continued importation of products such as urea and fertilisers was no longer justifiable, given the scale of ongoing and planned investments in domestic production capacity.
“The midstream segment of the oil and gas industry is a massive one that requires significant investment,” he said. “We need between $30 billion and $50 billion today if Nigeria is to be properly positioned as a hub, not only for oil and gas but also for secondary derivatives.”
He noted that expansion projects at facilities such as Indorama and Dangote Fertiliser would significantly boost local production, adding that Nigeria was on course to join the league of urea-exporting nations within the next two years.
“Value-added products like fertilisers and urea are things Nigeria has no business importing,” Mohammed said. “With the expansions currently underway, I am confident that within the next 24 months, Nigeria will be exporting urea, which is where we should be.”
He described Indorama’s investments as a clear example of the type of development needed to unlock the country’s midstream potential, calling for increased investments in fertiliser plants and other value-addition initiatives linked to Nigeria’s hydrocarbon resources.
“It is a manifestation of what Nigeria needs. More midstream investments are required to propel the country forward,” he added.
Explaining the choice of Rivers State for the inspection tour, Mohammed said the state occupies a strategic position in Nigeria’s oil and gas value chain, hosting critical national assets including refineries, processing plants and manufacturing facilities.
“The midstream and downstream sectors are well represented in Rivers State,” he said. “Whatever aspect of gas processing, refining or manufacturing you want to see, you can find it here.”
He added that the purpose of the visit was to gain first-hand insight into sector operations while strengthening regulatory engagement with operators.
Mohammed said the authority’s mandate was to create an enabling environment for businesses to thrive while attracting fresh investments into the sector.
“Our role is to facilitate operations, provide support and create the right conditions for operators to expand, while also encouraging new investors,” he said.
Also speaking, the Chief Executive Officer of Indorama Eleme Fertiliser and Chemicals Limited, Munish Jindal, described the visit as timely, noting that it allowed the regulator to better understand the realities, achievements and challenges within the midstream sector.
Jindal, who said Indorama has operated in Nigeria for over two decades, noted that Mohammed had played a role in the company’s early establishment.
He acknowledged improvements in regulatory understanding over the years but said some existing provisions were no longer suitable for midstream manufacturing companies.
“There are one or two issues that may apply to the broader oil and gas industry but are no longer relevant to midstream manufacturers like us,” Jindal said, adding that the company had requested regulatory exemptions in those areas.
He expressed optimism that the authority would review the concerns in line with current industry realities.
The NMDPRA chief disclosed that the Rivers State tour would conclude on Friday, adding that similar visits to facilities in other states were planned, as three days were insufficient to cover all key installations nationwide.
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