Revealed! FG approves more refineries to join Dangote

• The Federal Government through the NMDPRA has granted licenses to nine modular refineries
• The CEO of NMDPRA said that the licenses were granted within the last year by President Tinubu's administration
• He added that the major industrial sector's investment climate has improved thanks in large part to Tinubu

Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.

Nine modular refineries have received licenses from the Federal Government via the Nigerian Midstream and Downstream Petroleum Authority.

The licenses were granted within the last year by President Bola Tinubu's administration. Photo Credit: FG, Dangote refinery
Source: Getty Images

This was stated by Farouk Ahmed, the CEO of NMDPRA, during the 2024 Oil Trading & Logistics Africa Downstream Energy Week in Lagos on Monday, the Punch reported.

According to him, the licenses were granted within the last year by President Bola Tinubu's administration.

He claimed that under the current government, Nigeria's refining capacity has been growing, particularly with the Dangote refinery coming online.

According to him, the NMDPRA granted nine licenses for the establishment of modular refineries, seven licenses for their construction, and four licenses 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.

Through the innovative sectoral policies implemented over the past 18 months, Tinubu has been instrumental in improving the investment climate of the mainstream industrial sector, which Ahmed acknowledged.

He claims that the President's daring reforms have made the oil and gas industry a desirable place to invest, fostering profitability and successful economic endeavors.

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 increase its planned domestic refining capacity as well, 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 Simple Condition to Buy Petrol

Legit.ng 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 each month.

He said that by eliminating freight costs, importing from Nigeria instead of Europe would lower the cost of other goods and services.

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Source: Legit.ng