Friday, November 14, 2025 - In the last four years of the enactment of the Petroleum Industry Act (PIA), the Federal Government has issued 23 licenses to proposed refineries to establish their operations.
Nigerian Midstream and Downstream Petroleum Regulatory
Authority (NMDPRA) disclosed this at the maiden conference of the Energy
Correspondents Association of Nigeria (ECAN) in Abuja yesterday.
The theme of the conference was “Four Years of the PIA:
Achievements, Gaps and the Road Ahead’’,
NMDPRA Director Legal Tolurosho Joseph, who represented him
said upon completion, the plants will add over 850,000bpsd refining
capacity to the present 1,125,000bpsd.
He 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.
He specifically noted 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.
The Authority Chief Executive said 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.
He added that 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.
According to him, 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 are some of the key midstream and downstream
facility development projects that brought significant investments into the
sub-sector.
He also said 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 said 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.
According to him, 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.
This, he said, 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 said 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 catalyzing economic activities across Nigeria.
In partnership with Platts S&P Global, according to him,
NMDPRA convened the first ever West African Product Reference Market Conference
with key milestone outcomes, in May 2025.
He added that one of the major agreements at the summit was
to work towards making Nigeria (Lagos) a subregional hub for product price
referencing and market offtake.
Noting that the conference coincided with the fourth
anniversary of the NMDPRA, he said “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.”
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