Nigeria’s modular refineries have the capacity to supply more than 10 per cent of the country’s diesel demand if they receive adequate crude oil feedstock, the Crude Oil Refineries Association of Nigeria has said.
The association noted that the relatively small share of diesel currently supplied by modular refineries reflects persistent feedstock challenges rather than a lack of production capacity among the facilities.
CORAN says capacity far above current supply
CORAN’s Publicity Secretary, Eche Idoko, said recent data suggesting that modular refineries supply about two per cent of Nigeria’s diesel consumption does not fully capture their potential output.
According to him, the plants could produce between 10 and 15 per cent of the country’s diesel needs if crude supply improves, stressing that several facilities are operating below their installed capacity due to limited access to feedstock.
NMDPRA data shows modest contribution
Figures from the Nigerian Midstream and Downstream Petroleum Regulatory Authority show that modular refineries supplied an average of 2.37 per cent of Nigeria’s diesel demand between November 2025 and January 2026.
During the period, only three facilities Waltersmith Refinery, Edo Refinery and Aradel Holdings were operational, while OPAC Refinery and Duport Midstream Company were inactive. The operational plants produced an average of about 393,000 litres of diesel daily across the three months.
Larger refineries still dominate supply
Despite their presence, modular refineries remain a small part of Nigeria’s diesel supply chain, with larger facilities continuing to dominate the market.
For example, the Dangote Refinery supplied about 5.6 million litres of diesel per day in November, 5.8 million litres per day in December, and 10.9 million litres per day in January 2026, far exceeding the combined output of modular refineries.
Call to extend naira-for-crude policy
CORAN has therefore urged the Federal Government to extend the naira-for-crude arrangement to modular refiners, arguing that improved access to crude would significantly increase domestic diesel production and strengthen supply to critical sectors such as manufacturing, transportation and agriculture.