FG issues 23 refineries ‘license to establish’ in four years

• Crude oil supplied to local refineries exceeds 40,000 bpd in 2025

The Federal Government has issued 23 refineries ‘licenses to establish’ in the last four years of the enactment of the Petroleum Industry Act (PIA),

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) disclosed this at the maiden conference of the Energy Correspondents Association of Nigeria (ECAN) with the theme “Four Years of the PIA: Achievements, Gaps and the Road Ahead’’, in Abuja on Thursday.

NMDPRA CEO, Mr. Farouk Ahmed, represented by Director Legal, Tolurosho Joseph, said upon completion, the plants will add over 850,000bpsd refining capacity to the present 1,125,000bpsd.

Ahmed said, “23 refineries ‘License To Establish’ were issued from 2021 to date which when constructed and commissioned will add over 850,000bpsd refining capacity to the existing 1,125,000bpsd capacity.”

He said crude oil supply to domestic refineries rose from about 20,000bpd in 2023 to above 40,000bpd in 2025.

According to him, this is enabled by NMDPRA’s implementation of 2021 PIA provisions.

Ahmed said refined product supplies from local refineries to the domestic market have experienced drastic improvement.

NMDPRA CEO noted precisely that Premium Motor Spirit (PMS) supply grew from 1.3 billion litres in 2024 to 3.8 billion litres in 2025, and the outlook is positive.

He disclosed that the Midstream and Downstream Gas Infrastructure Fund (MDGIF) has invested over N287 billion in various gas infrastructure projects with 16 companies across 62 projects as of October 2025.

According to him, the MDGIF catalysed an additional $500 million investment to Gas infrastructure by leveraging on AFRIEXIM Bank MOU to expand energy access to drive economic development.

He mentioned UTM Offshore, NLNG train 7, AKK gas pipeline, OB3 gas pipeline, AIPCC refinery, Indorama fertilizer plant and Greenville’s LNG & LCNG projects, Walthersmith Refinery Train 2, Supertech’s Methanol Project as some of the key midstream and downstream facility development projects that brought significant investments into the sub-sector.

He also mentioned that 10 Gas distribution Licenses were issued for 10 gas distribution zones covering a pipeline network stretch of 692km, with carrying capacity of 712MMscf/day, connecting a total of 412 customers.

The NMDPRA boss declared that the total investment value in this distribution system was estimated at $639.07 million with multiplier effect across energy, agriculture, industry, manufacturing and socio-economic impacts.

He emphasized that the NMDPRA developed Gas Trading and Settlement Regulations in 2023, which applies to activities connected to the establishment of secure, reliable and efficient trading and settlement systems for natural gas and other gas commodities on exchange platforms regulated by the Authority.

Additionally, he said, this led to the Award of License to Establish and Operate the first ever Gas Trading Exchange in Nigeria in May 2025 to Jex Market Limited.

Ahmed explained that through efficient and prudent regulation, the Authority facilitated a steady supply of petroleum products in the country with product sufficiency within an average of 12 to 48 days, thereby eliminating fuel shortages and thereby catalysing economic activities across Nigeria.

In partnership with Platts S&P Global, he said, NMDPRA convened the first ever West African Product Reference Market Conference with key milestone outcomes, in May 2025.

One of the major agreements at the summit, according to him, was to work towards making Nigeria (Lagos) a subregional hub for product price referencing and market offtake.

He revealed that the conference coincided with the fourth anniversary of the NMDPRA, adding, “To be invited at a time when we in the Authority are marking the 4th anniversary of our establishment as a Regulatory Agency, to reflect on our achievements, challenges and the look ahead, all within the context of our grundnorm, by the Petroleum Industry Act 2021, is indeed a commendable coincidence.

“In the last 4 years, whenever I have had the opportunity to speak about our achievements and challenges at the NMDPRA, it always fills me with pride because on each occasion I am able to report that we are making very tangible progress at each step of the journey, even as we learn new ways to surmount challenges or turn them into building blocks of growth as an agency.

“And today, with the theme “Four Years of the PIA: Achievements, Gaps and the Road Ahead’’, I believe we have another big opportunity to profoundly reflect on the journey so far and to showcase to the world just how far we have been able to positively change the dynamics of regulation in the midstream and downstream oil and gas sector,” the NMDPRA boss emphasized.