The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has issued licences to three oil companies for the construction of new refineries that are expected to add around 140,000 barrels per day (bpd) to the country’s overall capacity.

The decision was revealed in a post on X on March 7, which noted that the NMDPRA’s chief executive Farouk Ahmed had presented a licence to construct a “100,000 bpd refinery to Eghudu Refinery Ltd in Edo State, a licence to establish a 30,000 bpd refinery to MB Refinery and Petrochemicals Company Ltd in Delta State, and a licence to establish a 10,000 bpd refinery to HIS Refining and Petrochemical Company Ltd. in Abia State”.

The licences were presented to the companies’ managing directors.

The NMDPRA previously granted an operational licence to the 6000 bpd Edo Refinery and Petrochemical Co. Ltd., which allowed it to commence full production.

The decision to grant licences to modular refineries come as part of a broader initiative by Nigeria to improve domestic refining capacity – a move that promises to improve the country’s economic situation by minimising fuel imports while also reducing pump prices.

The new plants are set to join the country’s existing large-scale refining facilities such as 650,000 bpd Dangote, 210,000 bpd Port Harcourt, 125,000 bpd Warri and 110,000 bpd Kaduna.

Other existing modular refineries currently producing include Waltersmith, Aradel, OPAC Refineries and Duport Midstream Co. Ltd.

While the NMDPRA has been engaged in expanding Nigeria’s oil refining facilities, the Nigerian National Petroleum Co. Ltd. (NNPCL) has also been working on constructing mini-liquified natural gas (LNG) plants Ajaokuta, Kogi State – with the company having already approved plans to begin construction. This particular fuel has been a valuable resource in the country – acting as a cleaner alternative to traditional fuels as they frequently fluctuate in price.

News of this event was similarly revealed on X, which listed the plants as NGML/Gasnexus LNG, PRIME LNG, Highland LNG, BUA LNG, and LNG Arete.

Upon construction, the assets are expected to allow for the production, storage and distribution of LNG in smaller amounts to customers out of reach of the country’s existing gas pipelines.

According to the NNPCL, the new plants are a key element in Nigeria’s plan to develop a more sustainable energy sector and, consequently, increase economic growth.