Kaduna Refinery Rehabilitation Reaches 81% Completion – NMDPRA Confirms

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has announced that the Kaduna Refinery rehabilitation project is now 81.1% complete. This milestone brings Nigeria closer to reducing fuel imports and strengthening domestic refining capacity.

Speaking on Tuesday, NMDPRA CEO Farouk Ahmed emphasized that the ongoing work at the Kaduna Refinery is critical to the country’s long-term energy security and economic resilience.

“While Kaduna’s refinery is nearing full rehabilitation, the connected pipeline infrastructure must also be addressed to ensure seamless operations,” Ahmed said.

Boosting Nigeria’s Refining Capacity

Ahmed noted that the project aligns with NMDPRA’s broader mission to improve local petroleum refining and reduce dependency on imported refined products. This is part of a national effort that includes the Port Harcourt and Warri refineries, as well as private sector contributions like the Dangote Refinery.

He added that the current upgrades will help protect the Nigerian economy from the volatility of international crude oil prices, especially as global geopolitical tensions continue to affect supply and demand.

Economic Impact of Local Refining

With Nigeria producing around 1.4 million barrels of crude oil per day, Ahmed explained that global oil price drops—while favorable to consumers—can negatively impact government revenues, which are heavily reliant on oil exports.

Increasing refining capacity locally, he noted, will help reduce foreign exchange pressure and improve energy cost stability.

“Rehabilitating the Kaduna Refinery not only helps meet local fuel demand but also supports the value of the Nigerian Naira,” he said.

Refinery Projects and Regulatory Oversight

NMDPRA currently oversees all licensed crude refineries, modular plants, petrochemical facilities, and distribution infrastructure in the country. Of Nigeria’s 10 licensed refineries with a combined capacity of 1.2 million barrels per day (bpd), only about 57.8% are operational, largely due to infrastructural and funding challenges.

In 2023, the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, confirmed that work on the Kaduna Refinery would begin in Q4 2024. The Nigerian National Petroleum Company Limited (NNPC Ltd.) has also reaffirmed its commitment to reviving both the Kaduna and Port Harcourt refineries to international standards.