The Federal Government says it is working towards ending the export of crude oil as it ramps up local refining capacity and positions Nigeria as a major supplier of refined petroleum products to the African market.
The Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Rabiu Umar, disclosed this during the 49th Nigeria Annual International Conference and Exhibition organised by the Society of Petroleum Engineers (SPE) Nigeria Council in Lagos.
Umar said the expansion of private and modular refineries, alongside ongoing refinery projects, would enable Nigeria to process more of its crude oil domestically instead of exporting it in its raw form. He added that the country’s ambition is to refine most of its projected crude oil production of three million barrels per day in the coming years.
According to him, exporting refined petroleum products rather than crude oil would create more value for the economy by strengthening the links between the upstream, midstream and downstream segments of the oil and gas industry while supporting growth in gas and petrochemical activities.
He said the NMDPRA is working with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to enforce the domestic crude supply obligation, describing it as essential for sustaining Nigeria’s expanding refining industry.
Umar also said the authority is strengthening the country’s energy security by developing strategic petroleum product reserves to cushion the impact of global supply disruptions and help stabilise domestic fuel prices. He noted that efforts are also being made to ensure petroleum products are stored closer to key markets to improve distribution during emergencies.
He added that the regulator is removing obstacles to the development of critical midstream infrastructure, including pipelines, depots and storage terminals, while collaborating with the Nigerian National Petroleum Company Limited under the Petroleum Industry Act to rehabilitate ageing infrastructure and improve operational efficiency.
On investment, Umar said the NMDPRA is simplifying regulatory processes to make licensing and approvals more transparent and predictable, a move aimed at attracting more investors into the sector.
He further disclosed that Nigeria is working with regulators across West Africa and S&P Global Commodity Insights to develop a regional benchmark for petroleum products. The initiative is expected to harmonise fuel specifications across the region, promote cross-border trade and strengthen Nigeria’s position as a petroleum trading hub.
Umar urged stakeholders to focus on implementing existing policies and reforms instead of introducing new strategies that could delay progress.
Also speaking at the conference, the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission, Oritsemeyiwa Eyesan, said collaboration among regulators, government agencies, investors and operators remains vital as geopolitical developments, climate concerns, technological advances and changing investment patterns continue to reshape the global energy industry.
Chairman of the SPE Nigeria Council, Francis Nwaochie, said Nigeria’s abundant hydrocarbon resources, growing gas sector, indigenous operators and expanding technology ecosystem provide a strong foundation for future growth.
He noted that recent initiatives, including the 2025 oil and gas licensing round, the Decade of Gas programme and the Federal Government’s planned N4 trillion bond to settle verified debts owed to power generation companies and gas suppliers, reflect efforts to strengthen investment and stability in the country’s energy sector.
