Nigeria’s downstream petroleum sector is witnessing a major transformation, with over 23 licenses issued between 2021 and 2026 and multiple refinery projects advancing across the country, according to the House of Representatives Committee on Petroleum (Downstream).
Chairman of the committee, Hon. Ugochinyere, said the scale of ongoing investments signals a decisive shift away from Nigeria’s long-standing dependence on imported refined products, stressing that the country is on track to add about 850,000 barrels per day in refining capacity in the coming years.
He pointed to several key projects at different stages of completion, including the Dangote refinery, currently at 650,000 barrels per day and targeting expansion, alongside a 100,000 bpd facility in Delta, a 30,000 bpd condensate refinery, modular refineries in Bayelsa, and a 200,000 bpd refinery in Akwa Ibom being developed with a French petrochemical firm. He also highlighted a proposed 500,000 bpd refinery in Ondo State’s Sunshine Free Trade Zone backed by international investors.
“So when you put all these things together, the target is that in the next few years, Nigeria is going to have extra 850,000 barrels per day refining infrastructure,” he said. “Each of these is at different stages of completion. So it’s not like Dangote Refinery is produced and so those other ones should not produce. Those other ones are advanced.”
Ugochinyere argued that the influx of projects will eliminate any fears of monopoly in the sector, noting that competition is intensifying as more investors commit billions of dollars.
“As I speak to you, if you go to Ogun and see what Atlantic is doing, if you go to Bayelsa and see what is happening, if you go to Edo, you will see the country is in a situation that Dangote Refinery is going to have a serious time in the days ahead,” he said.
The lawmaker described Nigeria’s past reliance on importing refined petroleum as economically damaging, saying, “Nigeria used to be a dumping ground. We sell our sweet Bonny crude and then import refined products. That was draining our foreign reserves.”
He, however, acknowledged persistent challenges, especially crude oil supply to local refineries, warning that limited access to feedstock could undermine the sector’s growth.
“The major complaint you get from them is non-availability of crude,” he said, while commending federal efforts to address the issue through a domestic crude supply committee.
Ugochinyere also advocated policy reforms, including granting refinery owners access to oil blocks to secure supply chains. “We have to consider it as a matter of national interest that our refineries have access to crude,” he stated.
He criticized the current pricing framework, arguing that exposing local refiners to international crude pricing makes domestic fuel less affordable. “How do you expect affordability when refiners are forced to operate at international prices?” he queried.
The lawmaker took aim at a World Bank staff member over comments perceived to support continued fuel importation, calling the remarks “unfair” and “baseless.”
“That comment was meant to undermine the sector and the effort that all of us have made,” he said. “Deleting that comment is not enough… ensuring that he goes through disciplinary measures is also very important.”
He warned that unregulated fuel importation could discourage investors who have committed over $200 billion into Nigeria’s downstream sector in the last seven years.
“If we open the border and say everybody should do whatever he or she likes, is that not stupid?” he asked. “When you refine, you should be able to have a market to sell.”
Ugochinyere insisted that Nigeria is making “very fast” progress in refining capacity and stressed the need to protect investments and ensure a stable market environment.
“Are we making progress? Yes, at a very fast speed,” he said. “This investment would not have come if investors don’t feel secure that after investing this kind of money, they’ll be able to make their money back.”
