Four years after the Petroleum Industry Act (PIA) became law, the Federal Government of Nigeria has approved 23 licenses to establish new refineries, a move poised to boost the nation’s refining capacity by over 850,000 barrels per stream day (bpsd).
The announcement was made by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) during the inaugural Energy Correspondents Association of Nigeria (ECAN) conference in Abuja, themed “Four Years of the PIA: Achievements, Gaps and the Road Ahead.”
Doubling Crude Supply to Domestic Refineries
At the event, NMDPRA’s Director of Legal, Tolurosho Joseph, revealed that Nigeria’s existing refining capacity of 1,125,000 bpsd will receive a significant boost once the new refineries are operational.
He also highlighted that crude oil supply to local refineries has doubled, increasing from around 20,000 barrels per day (bpd) in 2023 to more than 40,000 bpd in 2025.
This expansion is expected to enhance domestic energy security and reduce dependence on imported refined products, a key goal of the PIA reforms.
Surge in Local Refined Product Production
NMDPRA reported impressive gains in refined products, particularly Premium Motor Spirit (PMS). Production rose from 1.3 billion litres in 2024 to 3.8 billion litres in 2025, reflecting the direct impact of the PIA-driven initiatives on Nigeria’s fuel supply.
Such improvements signal that regulatory reforms are translating into tangible benefits for consumers and the broader economy, helping to stabilize fuel availability across the country.
Gas Infrastructure Fund Drives Investment
The Midstream and Downstream Gas Infrastructure Fund (MDGIF) has played a critical role in expanding Nigeria’s energy landscape.
So far, the fund has injected over N287 billion into 62 gas infrastructure projects across 16 companies. Through a partnership with the African Export-Import Bank (AFRIEXIM), an additional $500 million in gas infrastructure investment has been unlocked.
Key projects supported by the fund include:
-
UTM Offshore and NLNG Train 7
-
AKK and OB3 gas pipelines
-
AIPCC refinery and Indorama fertilizer plant
-
Greenville LNG and LCNG projects
-
Walthersmith Refinery Train 2 and Supertech’s methanol project
These investments are expanding energy access, creating jobs, and supporting industrial growth nationwide.
Expanding Gas Distribution Networks
NMDPRA has also issued 10 licenses for gas distribution, covering a 692km pipeline network with a carrying capacity of 712 MMscf/day, connecting 412 customers.
The total investment in this system is estimated at $639.07 million, with far-reaching impacts across energy, agriculture, manufacturing, and other socio-economic sectors.
Establishing Nigeria’s First Gas Trading Exchange
In 2023, the Authority introduced the Gas Trading and Settlement Regulations, paving the way for Nigeria’s first gas trading exchange, now operated by Jex Market Limited.
This exchange provides a secure and efficient platform for trading natural gas and other commodities, improving transparency and market efficiency.
Ensuring Steady Petroleum Supply
Through effective regulation, NMDPRA has maintained a stable supply of petroleum products, keeping stocks sufficient for 12 to 48 days and effectively preventing fuel shortages.
In May 2025, the Authority partnered with Platts S&P Global to host the first West African Product Reference Market Conference, aiming to position Lagos as a regional hub for product pricing and market activity.
Four Years of Progress
As NMDPRA marks its fourth anniversary, the CEO reflected on the Authority’s achievements:
“Over the past four years, we have made tangible strides in transforming regulation in Nigeria’s midstream and downstream oil and gas sector, while learning to turn challenges into opportunities for growth.”
The progress underscores how the PIA and NMDPRA’s efforts are reshaping Nigeria’s energy landscape, boosting refining capacity, improving gas infrastructure, and supporting sustainable economic development.
Share on Facebook «||» Share on Twitter «||» Share on Reddit «||» Share on LinkedIn