The Federal Government, through the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), has approved licenses for the construction of three new refineries.

According to a post on the NMDPRA’s official X handle on Friday, these facilities are expected to boost Nigeria’s domestic refining capacity by 140,000 barrels per day (bpd).

The licenses include a 100,000 bpd refinery granted to Eghudu Refinery Ltd in Edo State, a 30,000 bpd refinery awarded to MB Refinery and Petrochemicals Company Ltd in Delta State, and a 10,000 bpd refinery approved for HIS Refining and Petrochemical Company Ltd in Abia State.

The Authority’s Chief Executive, Engr. Farouk Ahmed, presented the licenses to the managing directors of the respective companies.

In a statement, the NMDPRA emphasized that these projects will significantly enhance Nigeria’s refining capabilities.

This development follows earlier approvals by the NMDPRA, including a license granted to MRO Energy Limited earlier this year for the construction of a 10,000 bpd refinery in Delta State.

Additionally, two months ago, the authority approved a license for Process Design and Development Limited to establish a 27,000 bpd refinery in Gombe State.

With these new approvals, Nigeria now has approximately 14 modular and regular refineries, marking a notable increase in the nation’s refining capacity.

Earlier this year, the Petroleum Products Retail Outlets Owners Association of Nigeria also announced plans to collaborate with partners to establish a refinery with an initial capacity of 50,000 bpd.

However, despite the growing number of refineries, many remain non-operational or underperforming.

A significant challenge is the allocation of crude oil, with local refiners accusing regulators of failing to provide sufficient crude supplies.

This has hindered domestic refiners from achieving full production potential, prompting criticism that the authorities prioritize fuel imports over supporting local refining efforts.