The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) says Nigeria is repositioning its oil industry to prioritise the export of refined petroleum products instead of crude oil as the country’s domestic refining capacity continues to expand.
reports that Rabiu Umar, chief executive officer (CEO) of the NMDPRA, disclosed this on Monday while speaking at the 49th Nigeria Annual International Conference and Exhibition (NAICE) organised by the Society of Petroleum Engineers (SPE) Nigeria Council in Lagos.
According to Umar, ongoing refinery projects and planned expansions will transform Nigeria into a major refining hub for Africa, enabling more of the country’s crude oil to be processed locally.
“The fact that today, we have more refining capacity in Nigeria than we’ve ever had. And, of course, with the projects that are on stream and the expansions that we are also going to witness in the coming years, clearly Nigeria is going to turn into a refining hub for Africa,” he said.
He added that Nigeria’s target of producing three million barrels of crude oil per day could eventually be matched by sufficient domestic refining capacity.
“This means that perhaps every single molecule of our three million barrels a day production that we hope to achieve in the next couple of years will actually be refined locally.
“What that means, and I think this is a monumental shift, is a handshake between the upstream, midstream and downstream.
“Effectively, it’s not just exporting the raw crude, but making sure that what we actually end up exporting is the refined petroleum products. And I think this is quite substantial.”
Umar said the NMDPRA is collaborating with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to enforce the domestic crude supply obligation, describing the policy as essential to sustaining the country’s growing refining industry.
“True resilience requires operational and commercial balance. And we remain steadfast in working with our sister agency, the NUPRC, in enforcing the domestic crude supply obligation,” he said.
“And this is really important because if we have enough refining capacity, we don’t have any reason to be exporting crude oil.
“The more of the refined products we are able to export, the more value we create because, after extraction, we’re also adding value, including in the gas and petrochemical sectors as well.”
He said processing crude locally would allow Nigeria to capture greater value across the petroleum value chain through stronger integration of the upstream, midstream and downstream sectors, while reinforcing the country’s position as a regional refining hub supported by both large-scale and modular refineries.
Also speaking at the conference, Oritsemeyiwa Eyesan, chief executive officer of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), said collaboration remains a cornerstone of the commission’s regulatory strategy.
According to Eyesan, the commission holds monthly engagements with industry stakeholders and undertakes extensive consultations in developing new regulations, guidelines and regulatory frameworks.
“We firmly believe that resilient energy systems, sustained investment and long-term growth can only be achieved through strong partnerships,” she said.
She noted that the global energy landscape is evolving rapidly due to geopolitical developments, climate concerns, technological advancements, artificial intelligence, changing investment priorities and rising energy demand, stressing that regulators and industry operators must continue to adapt to the changing environment.
