Nigeria’s modular refineries supplied just 4.3 per cent of domestic diesel consumption in September 2026, highlighting their limited contribution to the country’s diesel market despite ongoing efforts to expand local refining capacity.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), in its September 2026 report on the state of the midstream and downstream petroleum sector, reported that modular refineries supplied an average of 0.62 million litres of automotive gas oil (AGO), commonly known as diesel, daily during the month.
The figure represents a relatively small share of national diesel demand, which stood at 14.5 million litres per day in September, up from 14.3 million litres per day in August.
The NMDPRA data showed varying operational performance among the modular refineries covered in the report, with capacity utilisation ranging from below 20 per cent to more than 100 per cent.
Walter Smith Refinery operated at an average capacity utilisation of 62.25 per cent, producing 0.29 million litres of diesel daily and supplying 0.31 million litres to the domestic market.
Edo Refinery recorded capacity utilisation of 104.24 per cent, producing and supplying 0.09 million litres of diesel daily.
Aradel operated at 31.90 per cent capacity utilisation, with daily diesel production of 0.14 million litres and domestic supply of 0.12 million litres. OPAC recorded utilisation of 18.43 per cent, producing 0.14 million litres and supplying 0.11 million litres daily. Duport Refinery, meanwhile, was listed as shut down.
The figures underscore the differences in operating performance across the modular refining segment and the limited volume of diesel supplied by these facilities relative to overall domestic consumption.
The regulator identified feedstock challenges and maintenance shutdowns as factors affecting the performance of Aradel and OPAC during September.
These constraints contributed to their operating below optimal capacity, limiting the segment’s contribution to domestic diesel supply.
Reliable feedstock availability and consistent plant operations remain important to improving refinery utilisation and increasing the volume of petroleum products supplied by domestic facilities.
The modest contribution from modular refineries came against a backdrop of declining diesel receipts and slightly higher consumption across Nigeria’s downstream market.
According to the NMDPRA, total diesel receipts fell by 40 per cent month-on-month to 8.7 million litres per day in September, from 14.5 million litres per day in August.
Domestic diesel receipts declined by 39 per cent to 8.1 million litres per day, while imports fell by 54 per cent to 0.6 million litres per day.
Over the same period, daily diesel consumption increased by one per cent to 14.5 million litres.
The figures show a divergence between supply receipts and domestic consumption during the month. However, the factsheet does not attribute the overall decline in diesel receipts to modular refinery performance alone.
Diesel stock sufficiency stood at 49.7 days in September, down from 51.6 days in August but still above the regulator’s 30-day stock threshold.
The September figures highlight the relatively small role modular refineries played in meeting Nigeria’s diesel demand during the period. Improving their contribution will depend, in part, on addressing the operational constraints identified by the regulator, including feedstock availability and maintenance-related interruptions.
The performance data also reinforce the importance of assessing refinery output alongside actual domestic supply, rather than relying on capacity utilisation alone. While some facilities operated above or near their rated capacity, their reported diesel supplies remained modest in absolute terms.
For Nigeria’s downstream market, sustained improvements in refinery reliability and product availability could help strengthen the contribution of domestic facilities to the supply chain.