Nigeria’s expanding refining industry will require a steady increase in crude oil supply to ensure domestic refineries can operate at their full capacity, the Independent Petroleum Producers Group has said.

The group estimates that refineries operating in Nigeria could require as much as 1.5 million barrels of crude oil per day as the country’s refining capacity continues to grow.

The development of new and expanded refineries has increased expectations that Nigeria can reduce its reliance on imported petroleum products. However, industry stakeholders say inadequate access to crude could limit the benefits of the investments.

Operators of modular refineries have also raised concerns about difficulties in securing sufficient crude feedstock for their facilities.

The challenge places greater attention on Nigeria’s upstream oil sector, where sustained crude production will be needed to support the growing domestic refining industry.

Industry stakeholders have also called for clearer data on domestic crude supply and refined petroleum production.

The Major Energy Marketers Association of Nigeria has sought more reliable information on local fuel production to provide a clearer picture of the volume of petroleum products being supplied by domestic refineries.

According to stakeholders, transparent production and supply data would help refiners, marketers and other industry players better plan their operations and assess the country’s actual fuel supply requirements.

Nigeria has been investing heavily in expanding its domestic refining capacity, with large-scale and modular refineries expected to increase local production of petrol, diesel and other petroleum products.

However, industry players say the expansion of refining infrastructure must be matched by sufficient crude production and reliable supply arrangements.

The IPPG’s 1.5 million barrels per day estimate therefore highlights the growing link between Nigeria’s upstream production and its refining ambitions.

Without adequate crude supply, stakeholders warn that some refineries may struggle to operate consistently despite the country’s expanding processing capacity.