More Refineries to Join Dangote as FG Grants Licence for Companies to Operate in Nigeria
- The federal government, through the NMDPRA, has granted licences to nine modular refineries
- The CEO of NMDPRA said that the licenses were granted within the last year by President Bola Tinubu's administration
- He added that the major industrial sector's investment climate has improved due to efforts by Tinubu
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Nine modular refineries have received licences from the federal government via the Nigerian Midstream and Downstream Petroleum Authority.
Source: Getty Images
The Punch reported that Farouk Ahmed, the CEO of NMDPRA, stated this on Monday during the 2024 Oil Trading & Logistics Africa Downstream Energy Week in Lagos.
According to him, the licences were granted within the last year by President Bola Tinubu's administration.
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He claimed that Nigeria's refining capacity has been growing under the current government, particularly with the Dangote refinery coming online.
According to him, the NMDPRA granted nine licenses for the establishment of modular refineries, seven licences for their construction, and four licences for their operation.
“Over the course of the last year, the NMDORA has revised and consolidated its regulations through strategic industry stakeholder engagements with a view to streamlining the regulatory framework for ease of doing business and compliance. This is complemented by the issuance of relevant guidelines on automation for processes to strengthen regulatory clarity and enhance compliance.
“Our refinery sector has been expanding rapidly with the issuance of nine licences to establish, seven licences to construct and four licences to operate modular refineries,” he stated.
Ahmed acknowledged that Tinubu has been instrumental in improving the investment climate of the mainstream industrial sector through the innovative sectoral policies implemented over the past 18 months.
He claimed that the President's daring reforms have made the oil and gas industry a desirable place to invest, fostering profitability and successful economic endeavours.
The head of the NMDPRA insisted that Nigeria is on track to meet its goals of producing 3 million barrels of crude oil per day and 10 billion standard cubic feet of gas per day for domestic use under the current government and the ministers in charge of the oil and gas industries.
According to him, Nigeria will also increase its planned domestic refining capacity, turning it into a net exporter of petroleum products.
“Indeed, the Nigerian petroleum industry collector has all the complements of enabling structures to facilitate its growth and success. The NMDPRA is fully committed to supporting all the reform initiatives of Mr President and the mainstream and downstream subsector through enhanced regulatory processes, including efficient issuance of licences, permits and provisions,” he declared.
Ghana gives condition to buy petrol
Legit.ng earlier reported that the head of Ghana's oil regulator stated that once Nigeria's Dangote Oil Refinery reaches full capacity, Ghana may purchase petroleum products from the plant.
Reuters reported that Mustapha Abdul-Hamid, the chairman of Ghana's National Petroleum Authority, stated at the OTL Africa Downstream oil conference in Lagos that this may eliminate $400 million in petroleum imports from Europe monthly.
He said that importing from Nigeria instead of Europe would lower the cost of other goods and services by eliminating freight costs.
Proofreading by James, Ojo Adakole, journalist and copy editor at Legit.ng.
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