The Federal Government has granted 23 refinery licences in the four years since the enactment of the Petroleum Industry Act (PIA), according to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

This was disclosed yesterday 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.”

850,000bpd Additional Capacity Expected

Speaking at the event, NMDPRA Director of Legal Services, Tolurosho Joseph, who represented the Authority Chief Executive (ACE), said the newly issued Licences to Establish (LTE) would provide a significant boost to Nigeria’s refining landscape.

“Twenty-three refinery licences have been issued from 2021 to date. Once constructed and commissioned, these facilities will add over 850,000 barrels per day to the existing 1,125,000bpd national refining capacity,” he said.

Joseph added that crude supply to domestic refineries has doubled within two years, rising from 20,000bpd in 2023 to over 40,000bpd in 2025, a development he attributed to effective implementation of the PIA.

Strong Growth in Local Fuel Supply

He noted a marked improvement in local refined products, especially Petrol (PMS), which grew from 1.3 billion litres in 2024 to 3.8 billion litres in 2025, with expectations of continued growth.

Over N287bn Invested in Gas Infrastructure

The NMDPRA boss further revealed that the Midstream and Downstream Gas Infrastructure Fund (MDGIF) has invested more than N287 billion across 62 gas projects executed by 16 companies as of October 2025. Through strategic partnerships, including an Afreximbank MOU, the Fund also catalysed an additional $500 million into Nigeria’s gas infrastructure.

He listed major midstream and downstream projects attracting new investment, such as:

• UTM Offshore
• NLNG Train 7
• AKK and OB3 Gas Pipelines
• AIPCC Refinery
• Indorama Fertiliser Plant
• Greenville LNG/LCNG Projects
• Waltersmith Refinery Train 2
• Supertech Methanol Project

Gas Distribution Expansion

Joseph disclosed that the Authority also issued 10 gas distribution licences covering 692km of pipeline networks capable of transporting 712MMscf/day and serving 412 customers. The total investment value is estimated at $639.07 million, expected to generate significant impacts across energy, agriculture, manufacturing, and other sectors.

Regulatory Progress and Market Development

Highlighting regulatory advances, he said the Authority developed the Gas Trading and Settlement Regulations in 2023, leading to the licensing of Nigeria’s first Gas Trading Exchange to Jex Market Limited in May 2025.

Joseph also noted that NMDPRA’s oversight ensured a steady supply of petroleum products nationwide, maintaining product sufficiency for 12 to 48 days, effectively eliminating fuel shortages.

In May 2025, NMDPRA partnered with Platts S&P Global to host the first West African Product Reference Market Conference, where stakeholders agreed to work toward positioning Lagos as a subregional hub for product pricing and market offtake.

Four Years of PIA Implementation

Reflecting on the Authority’s four-year journey under the PIA, Joseph said the progress recorded has been significant:

“We continue to make tangible strides as we refine our regulatory frameworks, address challenges, and build the foundations for a more efficient midstream and downstream sector.”

He emphasised that the anniversary and the ECAN conference provided an ideal platform to review achievements, identify gaps, and chart a stronger path forward.