Crude, different constraints restrict Nigeria’s refining capability 62% – FG

Nigeria’s midstream and downstream petroleum sector stays hampered by low refinery utilisation regardless of a mixed put in capability of 1.125 million barrels per day, the Federal Authorities, by means of its Nigerian Midstream and Downstream Petroleum Regulatory Authority, has stated.

In line with the NMDPRA’s October 2025 Truth Sheet on the state of the midstream and downstream sector launched on Friday, the nation recorded solely 61.58 per cent refinery utilisation between Q1 and Q3 2025, a efficiency the regulator linked to technical constraints, crude provide limitations throughout refineries, and repeated downtime at authorities refineries.

The doc confirmed that solely 4 refineries, Dangote, Aradel(11,000bpd), Edo(1,000bpd), and Waltersmith(5,000bpd), are at the moment energetic, with a mixed operational capability of 467,000 barrels per day.

The 650,000bpd Dangote Refinery stays the nation’s largest refining asset, however NMDPRA knowledge confirmed the Lekki-based plant remains to be working beneath capability, regardless of the corporate’s plan to ramp up output to 1.4 million barrels per day. The regulator famous that the $20bn facility processed 449,000bpd in October.

The doc learn, “Refining Capability & Standing: Complete Refining Capability and Put in Capability (Typical & Modular) is 1,125,000 Barrels per day. However present utilisation is 61.58 per cent (Q1-Q3 2025) as a consequence of technical constraints and crude provide limitations.

“Energetic Refineries are (Dangote, Aradel, Edo, and Waltersmith) 4 nos-467,000 bpsd Mixed capability (as of October 2025).”

Different standard refineries embrace the state-owned services present process phased rehabilitation. The Port Harcourt Refinery contains an outdated 60,000bpd unit and a brand new 150,000bpd prepare, whereas the Warri and Kaduna refineries have put in capacities of 125,000bpd and 110,000bpd, respectively.

Within the modular refining house, Waltersmith operates a 5,000bpd plant, Duport Refinery 2,500bpd, Edo Refinery 1,000bpd, OPAC Refinery 10,000bpd, and Aradel’s modular unit 11,000bpd.

The NMDPRA said that 47 Licences to Set up with a cumulative capability of 1.75 million barrels per day have been issued since 2000. Equally, 31 Licences to Assemble have been granted for services representing 1.228 million barrels per day of deliberate capability.

Regardless of the approvals, solely three refineries are at the moment below energetic development, with a complete anticipated capability of 47,000bpd, together with Waltersmith’s Prepare 2 growth of 5,000bpd. The regulator famous that the 47 LTEs embrace the six non-public refineries at the moment in operation in addition to the 31 services which have superior to the development stage.

It added, “We’ve issued 47 Licences to Set up refineries with a mixed capability of 1,752,000bpd since 2000. Thus far, 31 Licences to Assemble, totalling 1,228,000bpd, have been granted, with three refineries at the moment below energetic development. These embrace Waltersmith Prepare 2 (5,000bpd), AIPCC (30,000bpd), and Azikel (12,000bpd). The 47 LTEs additionally cowl the six operational non-public refineries and the 31 LTCs which have superior to the development stage.”

The figures spotlight the widening hole between Nigeria’s refining ambitions and precise manufacturing output, regardless of years of licensing actions and heavy investments.

Sunday PidomNigeria remembers that the 650,000-capacity Dangote refinery has persistently decried the dearth of sufficient crude provide to its crops. Officers of the refinery stated the plant was more and more relying on america to get feedstock.

In the identical vein, homeowners of crude modular refineries repeatedly complained of crude shortages, asking the Federal Authorities to implement the home crude provide obligation as enshrined within the Petroleum Trade Act.

The Nationwide Publicity Secretary of the Crude Oil Refinery-owners Affiliation of Nigeria, Eche Idoko, in an interview earlier this yr, highlighted that this hole in operational capability isn’t solely affected by funding however by technical challenges, of which crude assure is a big problem.

He added that these services are at the moment unable to scale previous the ultimate funding determination stage as a result of they can not safe a supply of feedstock.

Idoko stated, “The most important challenges that buyers have had with finishing the proposed crops in Nigeria are that a whole lot of these crops must get previous the Remaining Funding Choice stage, and for them to go this stage, which is the ultimate monetary funding stage, they must assure and allay the fears of buyers on some challenges.

“And one of many main fears that they’ve is the provision of crude. So crude availability is a significant situation, and the information making the rounds concerning the unavailability of crude to refineries which are already working isn’t making our case simpler.

The CORAN spokesperson added that “modular refineries can solely ramp up capacities if two basic points are addressed. One is the feedstock assure for refineries, and the second is the strong funding alternatives for refinery initiatives.”

On the Crude Oil Refinery-Homeowners Affiliation of Nigeria summit held just lately in Lagos, the CORAN Vice-Chairman, Dolapo Okulaja, supported the declare, stressing that almost all native refiners weren’t getting sufficient crude to function effectively regardless of the authorized provisions below the Petroleum Trade Act.

“We want readability as to how a lot we will likely be getting in crude oil as a result of there appears to be an imbalance between what we’re producing and what we wish to give for native refining. What are you doing about giving native refineries the quantity of crude that they must be operational? I can not arrange a 20,000-barrel refinery, and I’m solely getting 10,000 or 5,000 barrels per day. How do I pay again my buyers?” she requested.

Okulaja stated that although the legislation emphasised home crude provide, most refiners don’t get the crude they want.

“We all know we’ve got the legal guidelines within the PIA, however the actuality is that almost all refiners are usually not getting the amount of crude they want in an effort to function effectively. If I want 300,000 barrels a month and also you’re solely giving me 30,000, the differential is an excessive amount of for the refiner to bear,” she stated

The CORAN President, Momoh Oyarekhua, argued that the PIA, although designed to help native refining, had additional sophisticated crude provide preparations by means of conflicting clauses.

The PIA, within the knowledge of the individuals that really drafted it, felt the home crude obligation have to be supported. However we, within the refinery sector, nonetheless really feel there’s a clog within the wheel of that facet of the PIA that’s speculated to allow the refinery.

“You can’t have an obligation and in addition put a situation, which is the keen purchaser, keen vendor clause,” he stated.

The NMDPRA is predicted to accentuate regulatory oversight because the nation pushes towards decreasing petrol imports and strengthening native provide chains.