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Tag: local refineries

  • ‘Local refineries supplied 87 per cent of cooking gas’

    ‘Local refineries supplied 87 per cent of cooking gas’

    Nigerian local refineries and gas processing plants, led by the Dangote Petroleum Refinery and NLNG Limited, supplied 87per cent of Nigeria’s domestic Liquefied Petroleum Gas (LPG), also known as cooking gas, in 2025, significantly reducing the country’s dependence on imports.

    According to the report, the sharp rise in domestic supply marked a major shift from 2023, when imported cooking gas accounted for about 47per cent of total consumption.

    The improvement has been driven largely by the coming on stream of the Dangote Petroleum Refinery, increased LPG output from NLNG, and contributions from other local plants.

    The report added that data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) indicated that a total of 52,900 metric tons of cooking gas was supplied to the domestic market in 2025.

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    Of this volume, 45,800 metric tons, representing 87per cent, were sourced locally, while only 7,100 metric tons, or 13per cent, came from imports.

    It explained that industry data showed that the growing dominance of local suppliers has led to a steady decline in LPG imports, easing pressure on foreign exchange demand and improving supply security in the domestic market.

    The report quoted some analysts as saying that increased local production has helped stabilise availability, even as consumption continues to rise.

    It added that the National Bureau of Statistics (NBS) corroborated the trend, reporting sustained growth in domestic LPG output alongside falling import volumes over the period.

    The NBS attributed the development to expanded refining and gas processing capacity, as well as policy reforms aimed at encouraging local production.

  • NANS urges Fed Govt to prioritise crude supply to local refineries

    NANS urges Fed Govt to prioritise crude supply to local refineries

    The National Association of Nigerian Students (NANS) has called on the federal government to prioritise crude oil supply to local refineries and protect private investors in the petroleum sector from sabotage.

    The students’ body urged the Nigerian National Petroleum Company Limited (NNPCL) and relevant agencies to openly commit to supplying crude to indigenous refineries, including those owned by Dangote and BUA.

    Speaking during a rally in Abuja on Wednesday, NANS national president, Olushola Oladoja, warned that selling crude to foreign refineries at cheaper rates than those offered locally would cripple domestic production and stifle Nigeria’s industrial growth.

    Oladoja said, “There must be an immediate end to selling crude oil to foreign refineries at cheaper rates than those offered to local refineries.

    “Local industries must be incentivised, not strangled.”

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    NANS also demanded a policy shift away from petroleum product importation, insisting that Nigeria’s refining capacity can now meet and surpass national demand.

    The NANS president urged the government to enact policies that safeguard private investments and uphold constitutional freedoms, particularly freedom of association.

    The students’ body condemned what it described as the ongoing harassment of private investors, including Dangote Industries, by trade unions in the country.

    He added, “NANS demands an end to the continuous harassment of private investors like Dangote. The right to operate peacefully and productively must be preserved.”

    He accused powerful interests — including oil importers, international oil companies, and global trading firms — of conspiring to frustrate the operations of private refineries through regulatory pressure, union coercion, and policy sabotage.

    Oladoja described the attempt by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) to compel Dangote Refinery workers to join the union as unconstitutional and a violation of Section 40 of the 1999 Constitution, which guarantees freedom of association.

    “Private refinery workers have every right to choose their form of representation or to remain un-unionised. Imposing union membership is a calculated attempt to frustrate private investment,” he added

    The students warned that they would mobilise nationwide demonstrations if such actions continued.

    “Today’s warning action is a statement of intent. If sabotage continues, NANS will mobilise millions of students to occupy federal highways across all 36 states and the FCT,” Oladoja said

    He likened the current situation to the deliberate sabotage that led to the collapse of Nigeria’s state-owned refineries, cautioning that allowing a repeat would destroy one of the country’s greatest industrial milestones.

    Oladoja insisted that the success of the Dangote Refinery would foster healthy competition and end monopolistic control in the sector.

    “Nigeria must discourage the importation of petroleum products, even from friendly nations, to protect our economy and jobs,” he said.

    NANS vowed to defend the country’s economic interests and ensure that the petroleum industry drives national development rather than being undermined by vested interests.

  • Reps Committee to investigate state of refineries, crude supply to local refineries

    Reps Committee to investigate state of refineries, crude supply to local refineries

    The House of Representatives Committee on Petroleum Resources (Downstream) has resolved to investigate the state of the nation’s refineries before and after they were shut down for Turn Around Maintenance(TAM). 

    The Committee resolution came at the end of a three day retreat in Lagos aimed at restoring stability and transparency in Nigeria’s downstream petroleum sector. 

    The committee also pledged to resolve the escalating crisis involving Dangote Group and the National Union of Petroleum and Natural Gas Workers (NUPENG).

    In addition, the Committee said it will investigate the circumstances surrounding the Ovh/NNPCL acquisition, the set backs Refinery owners go through in their quest to access crude supply to their Refineries/issue of premium. 

    Read Also: Reps committee moves to resolve Dangote, NUPENG dispute

    The retreat was part of preparation for the  commencement of full scale investigation into the NNPC Ltdacquisition of OVH Energy Marketing’s downstream assets and refinery upgrade following  a direct order from the House for the reinvestigation of the matter after the first report was turned down. 

    The retreat brought together lawmakers, industry stakeholders, union representatives, and regulatory bodies to address mounting concerns over alleged monopolistic practices, substandard petroleum products, and the marginalization of key players in the sector.

    Speaking on the Committee resolutions, Chairman of the Committee, Ikenga Imo Ugochinyere said the investigation is distinct from the previous inquiry carried out by the former  committee. 

    He stressed the resolve of the House Committee to “deliver real reforms that will ensure efficiency, fairness, and competitiveness across the board,” adding that the retreat marks a turning point in legislative oversight of the sector.

    He said Nigerians were free to make their input before the lawmakers presents their recommendations on the floor of the house, adding that one of the major causes of delay in concluding investigations is the failure of stakeholders to submit vital documents. 

    He said the committee has resolved to move forward with or without those submissions and complete the assignment as mandated by the House.

    Speaking on the crisis between Dangote Refinery and oil workers, he said will mediate between Dangote Group and NUPENG to prevent further escalation and ensure that all stakeholders are fairly represented. 

    The Committee applauded the leadership of Nmdpra led by Alhaji Farouk, Dangote Refinery led by Alhaji Aliko Dangote, Modular Refinery owners and other key stakeholders for the massive efforts and investments been deployed to see an working and productive downstream sector that is now guaranteeing energy security for Nigeria.

  • Energy advocates, APC group write Tinubu over local refineries

    Energy advocates, APC group write Tinubu over local refineries

    The Energy Reforms Advocates, ERA  and the APC Youth Vanguard for Change, APCYVC have urged President Bola Tinubu to investigate the persistent failure of the Nigerian National Petroleum Corporation Limited (NNPCL) to restore the Port Harcourt and other local refineries. 

    The groups expressed concerns over the $2.9 billion approved in 2021 for the rehabilitation of the refineries, which remain non-functional despite NNPCL’s assurances.

    In a letter addressed to the President, they lamented the continuous state of decay within the petroleum sector, stating it is a reflection of a persistent failure of NNPCL leadership. 

    These failure, the  ERA Convener, Opialu Fabian and APCYVC Convener, Ezewanka Ugochukwu who signed the letter, said  has led to economic sabotage, health hazards and environmental risks due to the importation of fuel.

    They criticised NNPCL’s repeated promises and prolonged inaction, citing systemic failure and corruption within the leadership. 

    They questioned the utilisation of funds allocated for refinery rehabilitation, which seems unaccounted for. Billions spent on maintenance over 25 years have yielded little to no fuel production.

    The groups proposed immediate actions, including revamping the regulatory framework, reactivating local refineries, transparency in subsidy implementation, strengthening NNPCL’s leadership, and empowering the public with information.

    The letter partly reads: “Your Excellency, we are witnessing a dire situation. Despite the approval of $2.9 billion in 2021 for the rehabilitation of these vital refineries, they remain non-functional. NNPCL has repeatedly assured Nigerians that these facilities would soon become operational, yet these assurances have failed to translate into reality. 

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    “The refineries stand dormant, while Nigeria, an oil giant and Africa’s largest oil producer, finds itself dependent on foreign countries to meet its domestic fuel needs. The consistent promises and prolonged inaction serve not only as a betrayal of trust but as a profound reflection of a systemic failure within the leadership of the NNPCL.

    “The ongoing importation of fuel represents an insult to Nigeria’s position as a leading crude oil producer. This cycle of imported substandard fuel undermines the health, safety, and economic stability of our citizens. The consumption of such fuel has led to health hazards, poses a risk to vehicles, and has severe implications for agricultural machinery. Nigerian citizens, meanwhile, pay a premium price for this subpar fuel, which contributes to rising inflation and daily hardships.

    “It is unacceptable that as one of the top oil-producing nations in the world, Nigeria is forced into a position where it has no choice but to rely on imported petroleum products to meet domestic demand. This prolonged reliance on imports has placed a significant strain on the nation’s foreign reserves, while a small, corrupt few reap immense profits. The corruption within this system is so deep-seated that these vested interests seem to actively oppose any attempt to rehabilitate our refineries.

    “The importation of fuel goes beyond economic implications; it endangers the lives of Nigerian citizens and the environment. Vehicles, agricultural equipment, and power generators are all at risk of serious damage from this substandard fuel. 

    “The time has come for systemic reform. The root causes of these challenges are multi-faceted, encompassing institutional corruption, regulatory weaknesses, and a pervasive culture of unaccountability. We propose the following actions as immediate steps toward a lasting solution:

    “Full investigation and accountability

    revamp of the regulatory framework,

    immediate efforts to reactivate local refineries’ transparency in subsidy implementation, strengthening NNPCL’s leadership and oversight and empowering the public with information and action.

    ”Mr. President, as Nigeria seeks to redefine its path towards sustainable economic growth, self-sufficiency, and a better future for its citizens, there can be no compromise on energy security. As it stands, the actions and inactions of NNPCL and its leadership are actively undermining our national interests. We implore Your Excellency to take swift and decisive action to address these longstanding failures.”

  • Fed Govt, oil producers agree on crude supply to local refineries

    Fed Govt, oil producers agree on crude supply to local refineries

    • Parties to provide monthly cargo price quotes

    The Federal Government and crude oil producers in Nigeria have agreed to work toward a sustainable supply of crude oil to local refineries under a market-determined pricing system. The aim is to ensure that while the operators do business optimally, the refineries are not starved of feedstock.

    The producers under the umbrella of the Oil Producers Trade Section (OPTS) of the Lagos Chamber of Commerce and Industry (LCCI), at a virtual meeting held with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and all the international oil companies (IOCs), agreed to concede to a framework that would be mutually beneficial aimed at ensuring that local refineries are not strangulated due to off-the-curve prices.

    The focus of the meeting held at the instance of the Commission Chief Executive (CCE), Gbenga Komolafe, an engineer, was on the status review of the Framework for Seamless Operationalisation of Domestic Crude Oil Supply Obligation Template.

    Speaking exclusively with The Nation yesterday, Komolafe explained that contrary to a report making the rounds that the decision was to placate certain interests, it was indeed targeted at ensuring energy security for the country.

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    “It is the job of the regulator to interface between the producers and the refiners; it is a delicate balance because we do not want one to overrun the other because that will lead to problem.

    If we don’t have product then there will be energy gap in supply the industry and this will not be a palatable situation for all, and if we have robust supply but they shut down the upstream and we can’t get crude production then there is also a problem. So we as regulator are simply trying to maintain the delicate balance,” he explained.

    The NUPRC boss emphasised that there must be clear rules of engagement and everybody must play by the rules so that there will be peace and sanity. This, he further explained, is why the Commission has now put in place a template in line with the International Best Practices in Crude and Supply Trading standard, not because of anybody or interest, but because of the system.

    “Whoever becomes a refiner or producer should play by that rule. This is being proactive on our part. We have ensured that the producers meet their monthly obligation and the next thing is the pricing with is germane. So what we are saying now is that on monthly basis both parties should give us a copy of their business transactions; it is a regulatory directive, it is to ensure transparency between both parties so that there won’t be issues. Cargo is traded and we publish monthly the price and volume traded,” Komolafe .

    In a statement issued by the Commission, yesterday, it noted that the initiative was part of efforts to effectively implement key sections of the Petroleum Industry Act (PIA) 2021, especially the issue of pricing and crude supply to the domestic refineries.

    The statement also noted that its CCE said President Bola Tinubu is fully committed to providing a level playing ground for producers and refiners to do business in the industry. He expressed the need for a rule of engagement to ensure that the pricing model from the oil producers does not hinder the domestic refineries. He directed producers and refiners to provide the NUPRC with cargo price quotes on crude supply and delivery for effective monitoring and regulation of transactions among parties. “We need to have the price quotes monthly,” he directed.

    Komolafe also pointed out a convergence between the Domestic Crude Oil Supply Obligation (DCOSO) and the nation’s energy security, indicating that his team is re-engineering its regulatory processes to address the challenges.

    “We allow all our processes to be transparent. While the Federal Government targets the implementation of the regulation, all parties must submit to the rules of engagement as a guide for operation,” he said.

    The regulator, he said, is committed to driving the willing buyer/willing seller provision. “We have to discuss pricing, especially as parties have committed to respecting their domestic crude oil obligation. As the regulator, we don’t want the upstream sector to be operated sub-optimally through cost under-recovery. So, the regulator is very alive to that.

    “In crude pricing we will never allow price strangulation to disincentivise our domestic refining capacity optimisation. The regulator does not support cost under-recovery in the upstream sector, and we will continue to work to ensure that crude supply profiteering as a negative factor that can strangulate our domestic refining capacity optimisation is disallowed,”  he said adding that the “NUPRC is committed to attracting the needed investments to boost upstream development and optimisation of our hydrocarbon resources just as we want sustainability of domestic energy supply in the midstream and downstream sector.”

  • Why local refineries are yet to produce petrol

    Why local refineries are yet to produce petrol

    • Group urges Fed Govt to revisit $1.5b fund

    Of all the private refineries in Nigeria at the moment, none of them can refine crude oil to the level of the Premium Motor Spirit (PMS) petrol because they have no reformer.

    They are seeking investment to add the PMS plants to the refineries at the moment.

    The in-country refineries, including Dangote Petroleum Refinery, are all engaged in primary refining that can only produce the Automotive Gas Oil (AGO), gas oil, nefta, and kerosene etc.

    Read Also: Paying subsidy on petrol is policy pragmatism, says El-Rufai

    Crude Oil Refinery Owners Association of Nigeria (CORAN) chairman, Engr. Momoh Oyarekhua disclosed this to The Nation in a telephone interview at the weekend.

    Oyarekhua, who is also the chairman of OPAC Refinery, also explained that the secondary processing unit of the refinery consists of the reformer, cracker and others, which all the plants in the country do not possess.

    He said: “So the secondary processing unit is where you have the reformer, the cracker and all of that. So, what most of the modular refineries don’t have is the secondary refining unit and which I just mentioned will require further investment to be able to install in our refineries.”

    According to him, the lack of the secondary unit in the domestic modular refineries is the reason they are not selling petrol.