Nigeria is on track to become a net petroleum exporter within two years, driven by a surge in local refining capacity, according to the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN).
This projection follows the Nigerian Midstream and Downstream Petroleum Regulatory Authority’s (NMDPRA) milestone of licensing 83 refineries, with a combined total refining capacity exceeding 1.1 million barrels per day.
The breakdown of the licenses includes, 8 refineries with Licenses to Operate (LTO), 30 refineries with Licenses to Construct (LTC) and 45 refineries with License to Establish (LTE)
The national president of PETROAN, Dr. Billy Gillis Harry, emphasised the importance of making crude oil available for local refineries, stating that if these refineries must remain in business, adequate provision must be made for sufficient volume of crude oil to be set aside for them.
Dr. Harry highlighted two key benefits of making crude oil available for local refineries which include increased domestic production of petroleum products, thereby reducing reliance on imported products and conserving foreign exchange.
The other is creation of jobs and stimulation of economic growth, as local refineries would be able to operate at optimal capacity and contribute significantly to Nigeria’s GDP.
The expansion includes major projects such as the Dangote Refinery and the rehabilitation of state-owned facilities in Port Harcourt, Warri, and Kaduna, alongside several modular refineries. Industry forecasts suggest that by 2025, Nigeria’s total refining capacity could reach 1.5 million barrels per day, positioning the country as Africa’s largest oil refiner and significantly reducing its reliance on imported petroleum products.
He highlighted that increased domestic refining will not only conserve foreign exchange but also create jobs and stimulate economic growth.
Recent data shows a sharp decline in petrol imports, dropping from 44.6 million litres per day in August 2024 to 14.7 million litres per day by April 2025, underscoring the impact of local refining initiatives. With ongoing regulatory support and investor confidence, PETROAN believes Nigeria is poised to transition from an importer to a net exporter of petroleum products, reshaping its economic landscape.
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