Nigeria's Domestic Refining Ambition Hits Crude Feedstock Crunch

Nigeria's ambitious plan to refine all its crude oil locally is facing a major hurdle due to persistent shortages of feedstock for domestic refineries. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has announced plans to engage the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) in negotiations to resolve supply constraints affecting local refiners.

The country's installed refining capacity now stands at 1.125 million barrels per day, with the Dangote refinery accounting for a significant share of this capacity at 700,000 barrels per day. However, the government's goal to achieve 3 million barrels per day in crude production is still far off.

The NMDPRA Director General, Rabiu Umar, emphasized that the Federal Government is committed to breaking away from the pattern of exporting crude oil while importing refined petroleum products. He stated that every molecule of Nigeria's projected three million barrels per day will be refined locally.