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FG Reveals Plan to End Crude Oil Exports, Build Refining Hub
The Federal Government says Nigeria is working towards ending crude oil exports as the country expands its refining capacity and positions itself as a major hub for refined petroleum products in Africa.
Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Rabiu Umar, disclosed this at the 49th Nigeria Annual International Conference and Exhibition of the Society of Petroleum Engineers in Lagos.
Umar explained that new private and modular refineries are transforming Nigeria from a crude exporter into a refining hub.
“With the projects on stream and expansions we are going to witness in the coming years, clearly Nigeria is going to turn into a refining hub for Africa. Every single molecule of our three million barrels a day production will actually be refined locally,” he said.
He stressed that enforcing the Domestic Crude Supply Obligation (DCSO) is critical to supporting the growing refining industry.
Umar added that exporting refined products rather than raw crude would create more value, including in the gas and petrochemical sectors, while strengthening energy security and stabilising prices through strategic reserves.
The NMDPRA chief noted that the agency is working with the Nigerian National Petroleum Company Limited (NNPC) to rehabilitate pipelines, depots and storage terminals, reduce losses, and improve throughput.
He also emphasised regulatory reforms to make the sector more predictable for investors, saying, “Our job is to make sure the environment is predictable. Once conditions are met, licensing should be like clockwork.”
Nigeria is also pursuing a West African petroleum products pricing benchmark with regional regulators and S&P Global Commodity Insights to create a transparent market and strengthen Nigeria’s role as a trading hub.
Industry leaders at the conference highlighted collaboration, investment, and resilience as key to navigating global energy shifts and ensuring Nigeria’s energy future.
