NMDPRA: Nigeria plans to refine all crude locally by 2030

Date:

By Abubakar Yunus

 

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) says Nigeria plans to allocate all its crude oil production to the domestic market by 2023 as local refining capacity expands.

According to a report by S&P Global, Nigeria produced 1.74 million barrels of crude per day in June and plans to increase production to 3 million daily by 2030.

The report said Nigeria has historically exported most of its crude to refiners in Europe and Asia but is increasingly focusing on downstream growth to strengthen energy security and boost national revenue.

NMDPRA told the publication that Nigeria’s domestic refining capacity currently stands at about 1.12 million bpd.

The authority said it has also engaged the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to enforce legal provisions requiring local producers to supply crude to the domestic market.

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Rabiu Umar, NMDPRA chief executive officer (CEO), said the Dangote refinery is helping to increase domestic refining capacity, particularly with its plan to double its processing capacity to 1.4 million bpd.

Umar said the authority is working to resolve crude supply shortages faced by local refineries and ensure compliance with the domestic crude supply obligations (DCSO) under the Petroleum Industry Act (PIA).

“The Federal Government wishes to end the pattern where much of the country’s crude [volumes] are exported and refined products imported,” Umar said.

“We are engaging the Nigerian Upstream Petroleum Regulatory Commission to ensure that every molecule of our 3 million b/d that we hope to achieve in the coming years is refined locally.”

NUPRC data, published on August 10, showed that 53.7 million barrels of Nigerian crude were supplied to domestic refiners in the second quarter (Q2) of 2026.

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Of the volume, 52.6 million barrels were supplied to the Dangote refinery.

The upstream regulator said Dangote was offered a higher volume of 68.1 million barrels, which would have fully met the refinery’s crude requirements.

According to the report, the Dangote refinery, which supplies as much as 90 percent of Nigeria’s refined products, has previously said securing sufficient and reliable crude supply was a challenge.

As a result, the refinery has sought crude from international sources to support its operations and expansion.

“The state-run Nigerian National Petroleum Co. was originally meant to supply the majority of its crude, but was restricted upon the launch of the refinery in 2024 by its forward selling,” S&P Global said.

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“The PIA, which took effect in 2021, empowers the NUPRC to impose DCSOs on upstream operators and licensees and to mandate that a specified percentage of their produced crude and condensate be allocated for local sale.”

Also, a spokesperson for the NUPRC confirmed to Platts, the pricing and news brand of S&P Global Energy, that discussions were ongoing with relevant government agencies on enforcement of the provision.

“We have been holding meetings involving the NMDPRA, Ministry of Finance, and crude suppliers on the enforcement of this provision of the law,” the NUPRC spokesperson said.

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