Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), said Nigeria’s refining sector has expanded following the issuance of nine Licenses to Establish (LTEs), seven Licenses to Construct (LTCS), and four Licenses to Operate (LTOS) modular refineries. Engr. Farouk Ahmed, Chief Executive, NMDPRA disclosed this in his keynote address at the 18th OTL Africa Downstream Energy Week summit held on Monday, in Lagos. Speaking on the theme of the Conference – Alliances for Growth – he said: “Nigeria is poised to achieve targets of 3 million barrels per day in crude oil production, a projected 10 billion standard cubic feet per day in domestic gas utilisation and enhanced domestic refining capacity that positions Nigeria as a net exporter of petroleum products.
“In the past year, the NMDPRA has revised and consolidated regulations through strategic engagements with industry stakeholders to streamline the regulatory framework for easier compliance. This effort is complemented by the issuance of relevant guidelines and the automation of processes to strengthen regulatory clarity and enhance compliance.” He also said: “This initiative aligns with the progression of the West African Gas Pipeline (WAGP) to Morocco, aiming to facilitate effective natural gas movement across the regions. This association could potentially integrate with existing regional regulators from East and South Africa to form a pan-African Energy Regulators Association, streamlining regulations and policy formulations across the continent.”
Ahmed also highlighted the promotion of Compressed Natural Gas (CNG) as a viable alternative to Premium Motor Spirit (PMS) and Automotive Gas Oil (AGO) for mobility fuel, adding: “Several interventions are being implemented to support the expansion of CNG infrastructure through the Pi-CNG, the Decade of Gas Program, and the MDGIF. “We are progressively expanding auto-CNG infrastructure, with plans for most retail outlets to install CNG add-ons to accommodate the growing number of CNG vehicles nationwide. The NMDPRA is committed to working closely with stakeholders to accelerate the necessary expansion of CNG infrastructure.” Similarly, Mr. Adetunji Oyebanji, Chairman of the Advisory Board, OTL Africa Downstream Energy Week, who harped on increased investment, said: “The recent full deregulation of Nigeria’s downstream sector, along with the shift to a market-based gasoline pricing system, marks a fundamental change in our market. Deregulation introduces new opportunities for competition, transparency, and efficiency, while market-based pricing sets a pathway for stability and fair value distribution across the supply chain.
“We are celebrating the commissioning of the long-awaited Dangote Refinery, a project of enormous scale and significance. With a capacity of 650,000 barrels per day, this refinery is not only a testament to Nigeria’s industrial capacity but a transformative development for the entire West African region. Together, these two milestones will shape industry dynamics for years to come, impacting everything from refining operations and distribution to market competition and consumer access.” On his part, the governor of Lagos state, Mr. Babajide Sanwo-Olu, called on investors to partner with the government in developing the energy sector, targeted at meeting increased demand in the state. He said: “Today, we are at a defining moment in Africa’s energy evolution, and Lagos State, as Nigeria’s economic powerhouse, is deeply aware of the critical role energy plays in shaping our collective future. Our government is committed to ensuring that Lagos remains a leader in energy innovation, investment, and sustainability. We are not just participants in this journey—we are setting the pace for energy reform and economic growth. Through concerted efforts, Lagos has established itself as an environment that welcomes investment, encourages technological advancement, and champions sustainable practices. As we look across Africa, the potential for energy sector transformation is immense, yet unlocking this potential requires the right environment—one that promotes growth, fosters innovation, and includes every voice.”
Nigeria’s refining sector to expand as NMDPRA issues 16 new licences
