By Nigeria is set to become a net exporter of petroleum products within the next two years, thanks to a sharp rise in local refining capacity, according to the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN).
This optimistic projection comes after the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) licensed 83 refineries—a combination of operational, under-construction, and planned facilities—with a combined refining capacity exceeding 1.1 million barrels per day. The licenses include 8 refineries with Licenses to Operate (LTO), 30 with Licenses to Construct (LTC), and 45 with Licenses to Establish (LTE).
Dr. Billy Gillis Harry, PETROAN’s national president, emphasized the critical need to allocate crude oil specifically for local refiners. He noted that securing crude supplies is key to keeping the refineries viable, stating, “If these refineries must remain in business, adequate provision must be made for sufficient volume of crude oil to be set aside for them.”
Dr. Harry pointed out two major benefits of domestic refining:
Reducing dependence on imported petroleum products and saving valuable foreign exchange.
Boosting local job creation and economic growth, as refineries operate closer to full capacity and contribute more to Nigeria’s GDP.
The growth includes high-profile projects such as the Dangote Refinery and the rehabilitation of state-owned facilities in Port Harcourt, Warri, and Kaduna, along with several modular refineries. Industry forecasts now estimate Nigeria’s refining capacity could hit 1.5 million barrels per day by 2025, potentially making the country Africa’s top oil refiner.
Recent figures reflect the momentum. Petrol imports have plunged from 44.6 million litres daily in August 2024 to just 14.7 million litres per day by April 2025, underlining the impact of expanded local refining. PETROAN believes this trend, coupled with regulatory backing and investor optimism, will enable Nigeria to shift from a fuel importer to a petroleum product exporter, transforming its economic and energy profile.
