The Nigerian government, along with the Dangote Petroleum Refinery and eight other refineries, will need 770,500 barrels of crude daily to meet processing demands in the first half of 2025, according to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
Breakdown of Refinery Requirements
The crude oil requirements for the refineries are as follows:
- Dangote Refinery: 550,000 barrels per day (bpd).
- OPAC Refinery: 5,000 bpd.
- Waltersmith Refinery: 4,500 bpd.
- Duport Midstream: 2,000 bpd.
- Edo Refinery: 1,000 bpd.
- Aradel Refinery: 7,000 bpd.
- Port Harcourt Refinery: 60,000 bpd.
- Warri Refinery: 75,000 bpd.
- Kaduna Refinery: 66,000 bpd.
This combined figure represents 37% of the country’s forecasted crude oil production of 2.07 million barrels per day (bpd) for the same period.
Increased Oil Production Capacity
In October 2024, the NUPRC launched the “Project 1 Million Barrels” initiative, aimed at boosting domestic production and ensuring a steady supply of crude for local use and export. The initiative has reportedly strengthened Nigeria’s capacity to produce over 2 million bpd, with plans to reach 2.5 million bpd in the near future.
Refining and Economic Impact
This development aligns with Nigeria’s commitment to enhancing domestic refining capacity, reducing dependence on imported fuel, and creating a more self-reliant petroleum industry. By increasing local production, the country hopes to stabilise fuel availability, lower import costs, and boost its economy.
December 2024 Oil Production Highlights
- Nigeria’s average daily oil production, including condensates, stood at 1.67 million bpd in December 2024, up 7.38% year-on-year from December 2023.
- Peak production in December 2024 reached 1.79 million bpd, while the lowest was 1.57 million bpd.
- Forcados Terminal led production with 8.49 million barrels in December, followed by Bonny Terminal with 7.78 million barrels and Qua Iboe Terminal with 4.15 million barrels.
Despite the progress, Nigeria fell short of meeting its OPEC production quota of 1.5 million bpd (excluding condensates).
Looking Ahead
The Federal Government and private sector refineries are expected to play a key role in achieving sustainable energy production and refining capacity in 2025. As the country works towards its goal of producing 2.5 million bpd, experts remain optimistic about the potential for economic growth and reduced reliance on fuel imports.