The Federal Government under President Bola Tinubu has issued a license to MRO Energy Limited for the establishment of a new refinery in Imode, Ughelli, Delta State.
The license, granted by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), permits the construction of a refinery with a capacity of 10,000 barrels per stream day (BPSD).
This approval follows the recent issuance of another license to Process Design and Development Limited for a 27,000 BPSD refinery in the Dole-Wure area of Akko, Gombe State, two months ago.
In a statement shared on its official X account, the NMDPRA revealed that its Authority Chief Executive, Engr. Farouk Ahmed, presented the license to MRO Energy Limited. “The Authority Chief Executive presented a License to Establish a 10,000 BPSD Refinery in Imode, Ughelli, Delta State, to MRO Energy Limited,” the post stated.
With the addition of this refinery, Nigeria now boasts approximately 11 modular and conventional refineries.
Despite the increase in licensed refineries, many existing facilities remain inactive or operate below optimal capacity. Earlier this month, the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) announced a partnership to establish a refinery with an initial capacity of 50,000 BPSD, reflecting continued efforts to enhance domestic refining capabilities.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has set an ambitious target of 770,500 barrels of oil per day for domestic refining. However, challenges in operational efficiency and full utilization of refineries continue to hinder progress in meeting this goal.
The establishment of additional refineries, including the newly licensed facility in Delta State, underscores the government’s commitment to reducing Nigeria’s dependence on imported petroleum products. This development is expected to contribute to job creation, technological advancements, and energy security while addressing longstanding inefficiencies in the nation’s oil and gas sector.
The government has also emphasized the importance of collaboration between regulatory authorities, private investors, and stakeholders to ensure the success of these projects and achieve the broader goal of refining self-sufficiency.
