The Federal Government has granted approval for the establishment of a refinery with a capacity to process 10,000 barrels of crude oil per day. This move is part of ongoing efforts to boost local refining capacity, reduce reliance on imported petroleum products, and enhance energy security in Nigeria.
The refinery, which will be privately owned and operated, is expected to contribute significantly to the domestic supply of refined petroleum products such as petrol, diesel, and kerosene. It aligns with the government’s broader strategy to encourage private sector participation in the downstream oil and gas sector.
In a statement, the Ministry of Petroleum Resources highlighted that the refinery’s approval is a step toward achieving self-sufficiency in petroleum product refining. “This initiative underscores our commitment to fostering investments in the oil and gas sector, creating jobs, and ensuring the availability of affordable energy for Nigerians,” the ministry stated.

The refinery is expected to adopt modern technology to ensure efficiency and environmental compliance. Its establishment is anticipated to not only meet local demand but also position Nigeria as a potential exporter of refined products within the West African region.
Industry stakeholders have commended the approval, noting that increasing local refining capacity is crucial for addressing the persistent challenges associated with fuel importation, including forex pressures and price volatility. However, they emphasized the need for government support in creating an enabling environment for such projects to thrive.
Analysts also pointed out that this development could significantly reduce the burden of subsidy payments on the government and contribute to Nigeria’s economic diversification goals. By processing crude oil locally, the country can retain more value within its economy and reduce exposure to global market shocks.
As the project takes off, attention will be focused on its implementation timeline, funding structure, and operational efficiency. Stakeholders are optimistic that this initiative will serve as a catalyst for further investments in Nigeria’s downstream oil and gas sector.
Support InfoStride News' Credible Journalism: Only credible journalism can guarantee a fair, accountable and transparent society, including democracy and government. It involves a lot of efforts and money. We need your support. Click here to Donate