Nigeria is taking significant strides in enhancing its crude oil refining capacity, with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) issuing licenses for the construction of three new refineries. This move is expected to add 140,000 barrels per day (bpd) to the country's refining capacity, aligning with the government's broader efforts to reduce reliance on imported petroleum products and enhance domestic refining.

The three new refineries, located in Edo, Delta, and Abia states, will further strengthen Nigeria's domestic petroleum processing capabilities. The refineries include Eghudu Refinery Limited, a 100,000 bpd refinery in Edo State; MB Refinery and Petrochemicals Company Limited, a 30,000 bpd refinery in Delta State; and HIS Refining and Petrochemical Company Ltd, a 10,000 bpd refinery in Abia State.

This expansion is part of Nigeria's strategic push to achieve self-sufficiency in petroleum refining and reduce reliance on imports. The country has been at the forefront of Africa's refining capacity expansion, contributing to 71% of the region's growth in this sector. The Dangote Refinery, which began operations in 2024 with a 650,000 bpd capacity, has been a key driver of this expansion.

The resurgence of local refineries is expected to drive price reductions due to increased supply, making fuel more affordable for consumers. As competition intensifies in Nigeria's petroleum industry, the growing number of refining facilities has triggered a competitive market environment, potentially lowering Premium Motor Spirit (PMS) prices.

With more locally refined petroleum products, Nigeria is poised to achieve better quality control, improved energy security, and reduced dependence on imported fuel. The Nigerian National Petroleum Company (NNPC) is also investing in the rehabilitation of state-owned refineries in Port Harcourt, Warri, and Kaduna, which have long suffered from neglect and underperformance.

The NNPC aims to restore full operational capacity, improving energy security and reducing the financial burden of fuel subsidies. This comprehensive approach to enhancing refining capacity is expected to have a significant impact on Nigeria's energy sector, driving economic growth and development.

In conclusion, Nigeria's efforts to boost its refining capacity through new refinery projects and the rehabilitation of existing facilities demonstrate a commitment to reducing reliance on imported petroleum products and enhancing domestic refining. As the country continues to strengthen its position in Africa's refining capacity expansion, it is poised to achieve greater energy security, improved quality control, and reduced dependence on imported fuel.