In the four years since the Petroleum Industry Act (PIA) was enacted, the Federal Government has issued 23 licenses to establish new refineries, a move expected to boost Nigeria’s refining capacity by over 850,000 barrels per stream day (bpsd), the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has disclosed. The announcement came at the maiden conference of the Energy Correspondents Association of Nigeria (ECAN) in Abuja, themed “Four Years of the PIA: Achievements, Gaps and the Road Ahead.”
Speaking at the event, NMDPRA Director Legal, Tolurosho Joseph, highlighted that the new refineries, once completed, will significantly raise Nigeria’s existing 1,125,000bpsd refining capacity. He also noted that crude oil supply to domestic refineries has doubled, rising from about 20,000 barrels per day (bpd) in 2023 to over 40,000bpd in 2025.
The regulatory authority reported notable improvements in local refined product supply. Premium Motor Spirit (PMS) production surged from 1.3 billion litres in 2024 to 3.8 billion litres in 2025, reflecting the positive impact of PIA-driven reforms.
NMDPRA also highlighted the role of the Midstream and Downstream Gas Infrastructure Fund (MDGIF), which has invested over N287 billion in 62 gas infrastructure projects with 16 companies. The fund has catalyzed an additional $500 million in gas infrastructure investment through a partnership with the African Export-Import Bank (AFRIEXIM), expanding energy access and supporting economic development. Key projects include UTM Offshore, NLNG Train 7, the AKK and OB3 gas pipelines, AIPCC refinery, Indorama fertilizer plant, Greenville’s LNG and LCNG projects, Walthersmith Refinery Train 2, and Supertech’s methanol project.
On gas distribution, NMDPRA has issued 10 licenses covering a pipeline network of 692km with a carrying capacity of 712MMscf/day, connecting 412 customers. The total investment in the distribution system is estimated at $639.07 million, with significant impacts across energy, agriculture, industry, manufacturing, and socio-economic sectors.
In addition, the Authority introduced the Gas Trading and Settlement Regulations in 2023, facilitating the establishment of Nigeria’s first gas trading exchange, operated by Jex Market Limited. This development supports a secure and efficient trading environment for natural gas and other commodities.
Through effective regulation, NMDPRA has helped ensure a steady supply of petroleum products, maintaining product sufficiency for 12 to 48 days and effectively eliminating fuel shortages. In May 2025, in partnership with Platts S&P Global, the Authority convened the first West African Product Reference Market Conference, aiming to position Lagos as a regional hub for product price referencing and market offtake.
Marking NMDPRA’s fourth anniversary, the Authority’s CEO emphasized the significant progress made since its establishment. “Over the past four years, we have made tangible strides in transforming regulation in Nigeria’s midstream and downstream oil and gas sector, while learning to turn challenges into opportunities for growth,” he said.
