The Federal Government has unveiled plans to gradually phase out crude oil exports as Nigeria ramps up domestic refining capacity, signalling a major shift towards exporting higher-value refined petroleum products instead of raw crude.
The Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Rabiu Umar, disclosed the strategy on Monday during the 49th Nigeria Annual International Conference and Exhibition organised by the Society of Petroleum Engineers (SPE) Nigeria Council in Lagos. He said the country’s expanding refining infrastructure, driven by large-scale private investments and modular refineries, could transform Nigeria into Africa’s leading refining hub within the next few years.
According to Umar, the government's long-term vision is for virtually all of Nigeria’s targeted three million barrels per day crude production to be refined locally. “If we have enough refining capacity, really we don’t have any reason to be exporting crude oil,” he declared, describing the transition as a “monumental shift” that would strengthen the integration of Nigeria’s upstream, midstream and downstream petroleum sectors. “Rather than exporting raw crude, what we should be exporting is refined petroleum products,” he added.
He explained that refining crude domestically would enable Nigeria to retain more value from its hydrocarbon resources while expanding opportunities in the gas and petrochemical industries. “The more refined products we are able to export, the more value we create because, after extraction, we are also adding value,” Umar said, noting that the policy would significantly improve earnings from the petroleum sector.
To achieve this objective, the NMDPRA boss said the authority was working closely with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to enforce the Domestic Crude Supply Obligation, ensuring local refineries receive adequate feedstock. He stressed that sustained crude availability remains essential to support the country's growing refining capacity and reduce dependence on imported petroleum products.
Beyond refining, Umar said the regulator was strengthening Nigeria’s energy security by maintaining strategic petroleum reserves capable of cushioning supply disruptions and limiting price volatility during global crises. He disclosed that the authority was also removing bottlenecks affecting pipelines, depots and storage terminals while collaborating with the Nigerian National Petroleum Company Limited (NNPC) to rehabilitate critical midstream infrastructure in line with the Petroleum Industry Act.
The NMDPRA chief also outlined efforts to improve the investment climate by making regulatory processes faster and more predictable. “We’re trying to move away from regulators being seen as police people,” he said. “Our job is to make sure the environment is predictable. Once the conditions are met, it should be like clockwork. We can’t move forward in the 21st century with a mindset of 1960.”
Umar further revealed that Nigeria was working with other West African regulators and S&P Global Commodity Insights to establish a regional petroleum pricing benchmark and harmonise product specifications across the sub-region. The initiative, he said, would eliminate barriers to cross-border fuel trade and position Nigeria as the dominant petroleum trading hub in West Africa.
Also speaking at the conference, the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Oritsemeyiwa Eyesan, said collaboration across government, regulators, investors and operators had become increasingly important as geopolitical tensions, climate concerns, technological disruption, artificial intelligence and shifting investment patterns continued to reshape the global energy industry. She noted that the conference theme, “Thriving in the Evolving Global Energy Landscape: Collaborative Growth and Resilience,” reflected the realities confronting Nigeria’s petroleum sector.
The Chairman of the SPE Nigeria Council, Francis Nwaochie, said recent developments, including the 2025 oil and gas licensing round, the Decade of Gas initiative and the Federal Government’s plan to settle verified debts owed to power generation companies and gas suppliers through a proposed ₦4 trillion government-backed bond, demonstrated growing momentum towards investment and sector stability. He urged stakeholders to translate resilience into higher crude production, accelerated gas commercialisation, improved ease of doing business, stronger regulatory coordination and increased access to long-term capital.If you'd like, I can also optimise this for SEO with a stronger search-friendly headline, meta description, slug, and keywords suitable for PetroleumPrice.ng.