The Federal Government, through the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), has granted a licence to MRO Energy Limited to build a new refinery in Delta State.
This refinery, with a capacity of 10,000 barrels per day, will be located in Imode, Ughelli, and is expected to contribute to Nigeria’s refining capacity. The announcement was made on NMDPRA’s official social media handle, where the Authority Chief Executive, Engineer Farouk Ahmed, presented the licence to the company.
This approval comes just two months after a licence was granted to Process Design and Development Limited for a larger 27,000-barrel-per-day refinery in Akko, Gombe State.
Expanding Refining Capacity
Nigeria now boasts 11 modular and conventional refineries. Earlier this month, another major project was announced, with the Petroleum Products Retail Outlets Owners Association partnering with others to develop a 50,000-barrel-per-day refinery.
However, many of these refineries struggle to operate efficiently or at full capacity, limiting their impact on the country’s overall energy production.
Domestic Refining Goals
The Nigerian Upstream Petroleum Regulatory Commission has set a target of refining 770,500 barrels of oil daily within the country. These new projects could help Nigeria move closer to meeting this goal and reducing its dependence on imported petroleum products.
While the increase in licensed refineries is a positive step, the real test will be ensuring they become fully operational and run efficiently.
This development reflects efforts to improve Nigeria’s downstream petroleum sector, but achieving lasting success will depend on addressing operational challenges and sustaining government support.