FG approves the construction of a 10,000 bpd refinery in Delta State

The Federal Government has approved the construction of a 10,000 barrels per day (bpd) refinery in Delta State. The licence was granted by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to MRO Energy Limited.

The refinery, to be situated in Imode, Ughelli, Delta State, marks another step towards reducing Nigeria’s dependency on imported petroleum products. The announcement follows a similar approval two months ago for Process Design and Development Limited to construct a 27,000 bpd refinery in Gombe State.

NMDPRA’s Chief Executive, Farouk Ahmed, who presented the licence to MRO Energy Limited, emphasized the significance of such initiatives in improving the nation’s refining landscape. “The authority Chief Executive, Farouk Ahmed presented a Licence To Establish a 10,000 Barrels Per Stream Day Refinery at Imode In Ughelli, Delta State, to MRO Energy Limited,” the agency noted via its official official X handle.

Despite the uptick in refinery approvals, the reality on the ground paints a more complex picture. Nigeria currently has about 11 modular and regular refineries, but many remain underutilized or non-functional, raising questions about the overall efficiency of the sector.

Earlier this month, the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) also revealed plans to establish a 50,000 bpd refinery, signaling growing interest in expanding domestic refining operations.

However, experts argue that these developments must be complemented by efforts to address the underlying issues plaguing the industry, such as operational inefficiencies and inconsistent crude oil supply.

The Nigerian Upstream Petroleum Regulatory Commission has set a target of 770,500 barrels of oil per day for domestic refining. Whether this target can be met amidst the challenges remains to be seen.