The Federal Government, via the Nigerian Midstream and Downstream Petroleum Regulatory Authority has granted licenses for nine modular refineries.
This was disclosed by the Chief Executive of NMDPRA, Farouk Ahmed, during the 2024 Oil Trading & Logistics Africa Downstream Energy Week held in Lagos on Monday, according to The Punch.
He said that the licenses were issued under President Bola Tinubu’s administration within the past year.
According to Ahmed, Nigeria’s refining capacity has been steadily increasing under the current administration, particularly with the commencement of operations at the Dangote refinery.
He stated that the NMDPRA issued nine licenses to establish modular refineries, along with seven licenses for construction and four licenses for operation of these facilities.
“Over the course of the last year, the NMDORA has revised and consolidated its regulations through strategic industry stakeholder engagements with a view to streamlining the regulatory framework for ease of doing business and compliance. This is complemented by the issuance of relevant guidelines on automation for processes to strengthen regulatory clarity and enhance compliance.
“Our refinery sector has been expanding rapidly with the issuance of nine licences to establish, seven licences to construct and four licences to operate modular refineries,” he noted.
Ahmed praised President Tinubu’s leadership in improving the investment environment within the mainstream industrial sector through innovative policies implemented over the past 18 months.
He noted that these bold reforms have transformed the sector into an attractive investment destination, fostering profitability and supporting viable business ventures in the oil and gas industries.
“Indeed, the Nigerian petroleum industry collector has all the complements of enabling structures to facilitate its growth and success. The NMDPRA is fully committed to supporting all the reform initiatives of Mr President and the mainstream and downstream subsector through enhanced regulatory processes, including efficient issuance of licences, permits and provisions,” he declared.
The regulator said the Nigerian petrol market is indeed undergoing major transformations for liberalisation.
“Our inspired target is to achieve a fully liberalised and mature market for all petroleum products and natural gas, where the market fundamentals lead to robust price discovery and attractive investment opportunities. The Federal Government is deepening the liberalisation of the energy market through robust policies and provision of generous incentives to increase investment by both domestic and international companies,” he added.
Ahmed stated that the Dangote refinery will significantly enhance fuel supply once it is fully completed and licensed.
“Dangote Petroleum Refinery and Petrochemical Limited came on stream in February 2024 for the production of some petroleum products such as automotive gas oil, and aviation fuel.
