Nigeria is on track to become a net petroleum exporter by 2027, with the NMDPRA licensing 83 refineries boasting a combined capacity of over 1.1 million barrels per day

[dropcap]N[/dropcap]igeria is steadily moving towards becoming a full petroleum exporting nation by 2027, following a significant milestone achieved by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

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The regulatory body has announced the licensing of 83 refineries with a total combined refining capacity of 1,124,500 barrels per day.

This development signifies a transformative shift in Nigeria’s energy landscape as the federal government intensifies its efforts to bolster local refining capabilities and significantly reduce the nation’s reliance on imported petroleum products.

The licenses issued by the NMDPRA encompass eight operational licenses (Licenses to Operate), 30 Licenses to Construct, and 45 Licenses to Establish.

According to the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), this newly licensed capacity firmly positions Nigeria to transition from being a net importer to a consistent exporter of refined petroleum products within the next two years.

PETROAN’s National President, Billy Gillis-Harry, commended the NMDPRA for its proactive stance in encouraging investment and enhancing transparency across the entire oil and gas value chain.

He emphasized that the crucial next step involves ensuring a sufficient and consistent allocation of crude oil to these local refineries to maintain their operational efficiency and commercial viability.

Gillis-Harry stressed that sustained access to feedstock is paramount for driving consistent output, further reducing fuel import volumes, and conserving valuable foreign exchange reserves.

Data from the downstream sector already indicates a significant decline in petrol imports, dropping sharply from 44.6 million litres per day in August 2024 to just 14.7 million litres per day as of April 13, 2025.

The new capacity places the country in a strong position to transition from a net importer to a consistent exporter of refined petroleum products over the next two years,” – Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN).

This substantial reduction underscores the tangible impact of increased local refining capacity and signals growing investor confidence in Nigeria’s domestic capabilities.

Gillis-Harry highlighted the dual benefits of prioritizing local refining, citing significant job creation and substantial long-term economic growth.

He also emphasized the crucial role of limiting import exposure in preserving the nation’s foreign exchange reserves.

He credited the Chief Executive Officer of NMDPRA, Farouk Ahmed, for the introduction of key policy reforms that have notably improved investor sentiment and spurred increased private sector participation in refinery projects.

Gillis-Harry further noted that the NMDPRA’s coordinated licensing approach is fostering a more structured and accountable downstream environment.

As the number of licensed refineries continues to grow, the government is expected to intensify its monitoring and compliance mechanisms to ensure operational efficiency, stringent environmental safety standards, and overall sustainability within the sector.

Industry experts suggest that achieving full petroleum export status will depend not only on refining capacity but also on maintaining security stability, efficient logistics, and consistent policy direction.

With 83 refinery projects now underway, Nigeria is demonstrably moving closer to reversing its long-standing historical dependence on petroleum imports and aligning with its overarching long-term energy security objectives.

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Analysts predict that if crude oil allocation and essential infrastructure upgrades continue at the current pace, Nigeria has the potential to emerge as a significant regional hub for refined petroleum exports by the year 2027.