Local refineries contributing less than 50% of local consumption –NMDPRA

By Adewale Sanyaolu

The Nigerian Midstream Downstream Petroleum Regulatory Authority (NMDPRA) has said that local refineries are contributing less than 50 per cent of local consumption.

Authority Chief Executive/Chief Executive Officer, NMDPRA, Mr. Farouk Ahmed, disclosed this at a media briefing in Abuja on Wednesday.

He added that despite the country’s three operational refineries boasting a combined refining capacity of 985,000 barrels per day, less than 50 per cent of the daily petrol demand is met locally, adding that the shortfall is being augmented by the importation of refined petroleum products.

Ahmed, who was represented by the Executive Director, Distribution System, Storage, and Retailing Infrastructure, Ogbugo Ukoha, said, “The contribution of local refineries towards sufficiency is less than 50 per cent of what we require daily. This shortfall is sourced through imports. Even though none of the domestic refinery owners have imported petrol this year, the oil marketing companies (OMCs) have stepped in to bridge the gap.”

Despite the operational refineries, including the Port Harcourt refinery (210,000 bpd) and the Warri refinery (125,000 bpd), which resumed production after years of dormancy, the country continues to rely heavily on imported petrol.

Nigeria’s reliance on imported fuel is a pressing issue, especially since the Dangote refinery, with a capacity of 650,000 barrels per day, has started operations, raising hopes for local production.

But Ahmed emphasised that without the importation of refined products, fuel shortages would be inevitable.

He reassured the public that all imported petroleum products meet the required standards. “The NMDPRA insists that all imported products meet the specifications of the Standards Organization of Nigeria and the Petroleum Industry Act.”

He dismissed recent claims of substandard products circulating on social media as baseless and misleading.

The NMDPRA boss reaffirmed the authority’s commitment to ensuring a steady and quality fuel supply across Nigeria. “If necessary, we will utilise the supplier of last resort to fill any gap to avoid disruptions within the supply,” he stated.

He disclosed that Nigerians were consuming approximately 50 million litres of petrol every day, which is a significant decrease from the previous average of 66 million litres per day, occasioned by the government’s removal of the fuel subsidy in May 2023.

“Let me speak a little bit about supply. All of us experienced a yuletide free of petrol scarcity. From year to year, we saw an increase in demand for petrol, but following the subsidy removal, consumption reduced significantly,” he said.