Nigeria's oil industry is set for growth as petroleum marketers prepare to launch a new 50,000 barrels per day (bpd) refinery. This development comes as a significant step towards self-sufficiency in the petroleum sector, addressing the country's long-standing challenge of being a leading crude oil exporter while heavily dependent on imported refined products.

The agreement to establish a new refinery in Nigeria is between Nigerian petroleum marketers and three oil companies, including Claridge Petroleum Company Ltd, Oasis Petrochemical Products Limited, and Afrintech. According to Billy Gillis-Harry, National President of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), the refinery will be developed in collaboration with these companies and located in Akwa Ibom State.

This development is part of Nigeria's energy strategy, which focuses on building new refineries, modernizing existing facilities, and fostering partnerships to enhance efficiency and achieve self-sufficiency in the petroleum sector. Significant progress can be seen in the rehabilitation of government-owned refineries like Warri and Port Harcourt and the promotion of modular refineries nationwide.

The Dangote Refinery has emerged as a transformative force in Nigeria's economy, positioning itself as a major player in the global petroleum industry. Between April and September 2024, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) reported that the refinery supplied 489,500 MT of Automotive Gas Oil (AGO) and 29,000 MT of Jet A1 fuel. These were distributed via 17 AGO shipments to Lagos, 6 to Warri, 2 to Port Harcourt, and 1 to Calabar, highlighting its key role in domestic fuel supply.

The Dangote Refinery has also commenced exporting Premium Motor Spirit (PMS) to several African countries, including Ghana, Angola, South Africa, Cameroon, and Nigeria. This marks a significant milestone in enhancing regional fuel supply and reducing dependency on external sources.

According to Gillis-Harry, the deal with the three oil companies effectively nullifies the group's earlier agreement on petroleum importation. In November last year, PETROAN had announced plans to import and sell Premium Motor Spirit (PMS) at prices below those offered by the Dangote Refinery and the Nigerian National Petroleum Company Limited (NNPC). However, Gillis-Harry revealed that the importation plan has been scrapped in favor of establishing a new refinery, aligning with the association's commitment to boosting local production and ensuring affordable fuel for Nigerians.

This new arrangement is expected to have a significant impact on Nigeria's energy landscape, enhancing the country's oil production capacity and reducing its dependence on imported refined products. As Africa's largest oil producer, Nigeria is poised to take a major leap towards self-sufficiency in the petroleum sector, with far-reaching implications for the regional energy market.

In conclusion, the launch of the new 50,000 bpd refinery marks a significant milestone in Nigeria's journey towards energy self-sufficiency. As the country continues to make progress in rehabilitating government-owned refineries and promoting modular refineries, its oil industry is set for growth, with far-reaching implications for the regional energy market.