Following the implementation of the Petroleum Industry Act (PIA), the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) says domestic crude oil refining capacity has increased to 682,000 barrels per day, from just 5,000 barrels per day in 2021.
The figure represents 13,540 percent increase in five years, signalling a major shift in the country’s petroleum industry.
NMDPRA’s Chief Executive, Rabiu A. Umar, disclosed this at the 20th edition of the OTL Africa Downstream Energy Week 2026 in Lagos, saying the growth in refining capacity reflected the transformation taking place in the midstream and downstream petroleum sectors since the PIA came into force in 2021.
According to him, the expansion of domestic refining is strengthening the country’s energy security, reducing dependence on imported petroleum products and positioning Nigeria as a potential refining hub for West Africa.
Umar said domestic refineries now supply about 74 percent of petrol consumed in the country, compared with approximately 44 percent in September 2025.
He added that petrol imports had declined by 54 percent within one year, falling from 22.1 million litres per day to 10.2 million litres per day.
The NMDPRA boss said the development demonstrated the growing capacity of local refineries to meet domestic demand, while reducing Nigeria’s exposure to disruptions in the international petroleum market.
He, however, stressed the need to diversify domestic refining sources, noting that a substantial proportion of local petrol supply currently comes from one large refinery, which operated above its nameplate capacity in September.
He said the authority would continue to support modular refineries and work with the Nigerian National Petroleum Company Limited (NNPC) towards the return of the Port Harcourt, Warri and Kaduna refineries.
He also assured petroleum importers that the regulatory authority would maintain an open and competitive market, with import licences issued based on published and merit-based criteria applicable to qualified operators.
Umar acknowledged that domestic petrol volumes declined in September, from the August peak, as refinery exports increased, stressing the importance of balancing regional trade with local supply requirements.
Beyond petrol, he said domestic refineries supplied 93 percent of diesel received into the Nigerian market in September, while domestic aviation fuel receipts also recorded an increase.
He noted that the country’s LPG market had expanded by 50 percent, with supply rising from 1.2 million metric tonnes in 2021 to 1.8 million metric tonnes.
Similarly, he said the number of compressed natural gas (CNG) compression facilities increased from 17 in 2021 to 43, while CNG and liquefied natural gas autogas stations rose from 16 to 101.
Despite the progress, Umar said the country should address gaps in petroleum product storage and supply resilience.
He disclosed that petrol stock cover stood at approximately 24 days in September, below the 30-day threshold, while cooking gas stock cover was even tighter at 15.9 days.
He said the authority is targeting between 30 and 45 days of petroleum product sufficiency through improved supply planning, strategic reserves and investments in storage infrastructure.
Umar said the NMDPRA was working with NNPC Limited to operationalise a National Strategic Stock pilot at depots in Ibadan, Enugu and Suleja.
He added that the authority was also strengthening domestic crude supply arrangements through the Domestic Crude Supply Obligation and the Naira-for-Crude initiative to ensure that local refineries have access to feedstock.
Looking ahead, the NMDPRA chief executive said Nigeria required between $30 billion and $50 billion in fresh oil and gas investments to expand processing capacity, fertiliser production, LPG supply and flare-gas commercialisation.
He identified depots, jetties, coastal shipping and the revival of petroleum product pipelines as additional investment opportunities for private-sector participation through public-private partnerships.
Umar said Nigeria’s 215 trillion cubic feet of gas reserves, the largest in Africa, offered significant opportunities for industrialisation and regional energy development.
He urged investors, refiners, marketers and logistics operators to take advantage of emerging opportunities, stressing that sustainable energy security required collaboration among regulators, industry operators and financiers.
He said Nigeria’s ambition should extend beyond meeting domestic petroleum demand to becoming a major refining and energy supply hub for the African continent.