The Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has issued nine Licenses to Establish (LTEs), seven Licenses to Construct (LTCs), and four Licenses to Operate (LTOs) for modular refineries, signaling a significant move towards enhancing the country’s domestic refining capabilities.
During his keynote address at the 18th OTL Africa Downstream Energy Week in Lagos, NMDPRA Chief Executive Engr. Farouk Ahmed highlighted the government’s ambition to achieve a production target of three million barrels of crude oil per day and to increase domestic gas utilization to 10 billion standard cubic feet per day. He stated that expanding local refining capacity would position Nigeria as a net exporter of petroleum products.
“In the past year, the NMDPRA has engaged stakeholders to revise and consolidate regulations, streamlining the regulatory framework to enhance compliance,” Ahmed noted, adding that efforts are underway to automate processes for improved regulatory clarity.
Ahmed also addressed the development of the West African Gas Pipeline (WAGP) project, which aims to facilitate natural gas movement across West Africa, and suggested a potential partnership with East and Southern African regulators to establish a pan-African Energy Regulators Association.
He emphasized the promotion of Compressed Natural Gas (CNG) as an alternative fuel, with plans to expand CNG infrastructure through initiatives like the Pi-CNG, the Decade of Gas Program, and the MDGIF. “Our goal is to accelerate CNG infrastructure expansion at most retail outlets, supporting the growing number of CNG vehicles nationwide,” he added.
Mr. Adetunji Oyebanji, Chairman of the OTL Africa Downstream Energy Week Advisory Board, commended the recent deregulation of Nigeria’s downstream sector and the commissioning of the Dangote Refinery, which has a capacity of 650,000 barrels per day. He emphasized that this development marks a significant milestone for Nigeria and the West African region, fostering competition, transparency, and stability within the sector.
Lagos State Governor Babajide Sanwo-Olu urged investors to collaborate with the government to meet the rising energy demands of the state, stating, “Our government is committed to ensuring that Lagos leads in energy innovation, investment, and sustainability. We have created an investment-friendly environment that encourages sustainable practices and technological advancement.”
The government’s initiatives aim to create a robust energy sector that promotes growth, innovation, and inclusivity, contributing to a transformative period in Nigeria’s refining capacity and energy infrastructure.
