Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) says Nigeria is targeting the allocation of all its crude oil production to domestic refineries by 2030 as local refining capacity continues to expand.
Gatekeepers News reports that the authority disclosed this as the country moves to reduce its dependence on crude oil exports and strengthen domestic refining and energy security.
According to NMDPRA, Nigeria’s refining capacity is expanding, creating the opportunity to process a larger share of locally produced crude within the country.
Nigeria produced about 1.74 million barrels of crude oil per day in June, while the country is targeting an increase in production to three million barrels per day by 2030.
The development is part of efforts by the Federal Government to deepen domestic refining, improve energy security and position Nigeria as a major hub for refined petroleum products in Africa.
The NMDPRA has also been working with other petroleum sector agencies to strengthen the domestic crude supply chain and ensure that local refineries have adequate crude feedstock.
Nigeria has historically exported a large proportion of its crude oil while importing refined petroleum products due to inadequate domestic refining capacity. However, the expansion of private refining capacity, particularly the Dangote refinery, alongside efforts to restore government-owned refineries, is changing the structure of the downstream petroleum sector.
The regulator’s target would represent a major shift in Nigeria’s petroleum industry, with crude increasingly processed domestically rather than exported for refining abroad.
