Nigeria will prioritise refined petroleum products exports over crude oil – NMDPRA CEO

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) says the federal government is working towards prioritising the exports of refined petroleum products, rather than exporting crude oil.

Rabiu Umar, chief executive officer (CEO) of the NMDPRA, spoke on Monday at the 49th Nigeria Annual International Conference and Exhibition (NAICE) organised by the Society of Petroleum Engineers (SPE) Nigeria Council in Lagos.

Umar said the country’s growing refining capacity would enable Nigeria to process more of its crude domestically rather than export the raw commodity.

“The fact that today, we have more refining capacity in Nigeria than we’ve ever had. And, of course, with the projects that are on stream and the expansions that we are also going to witness in the coming years, clearly Nigeria is going to turn into a refining hub for Africa,” he said.

“This means that perhaps every single molecule of our three million barrels a day production that we hope to achieve in the next couple of years will actually be refined locally.

“What that means, and I think this is a monumental shift, is a handshake between the upstream, midstream and downstream.

“Effectively, it’s not just exporting the raw crude, but making sure that what we actually end up exporting is the refined petroleum products. And I think this is quite substantial.”

The NMDPRA CEO said his agency is working with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to enforce the domestic crude supply obligation — describing it as critical to supporting the country’s expanding refining industry.

“True resilience requires operational and commercial balance. And we remain steadfast in working with our sister agency, the NUPRC, in enforcing the domestic crude supply obligation,” he said.

“And this is really important because if we have enough refining capacity, we don’t have any reason to be exporting crude oil.

“The more of the refined products we are able to export, the more value we create because, after extraction, we’re also adding value, including in the gas and petrochemical sectors as well.”

Umar said the shift to domestic refining would allow Nigeria to extract greater value from its petroleum resources through stronger integration of the upstream, midstream, and downstream sectors.

He further highlighted Nigeria’s emergence as a regional refining hub, driven by the growth of both large-scale and modular refineries.

Also speaking, Oritsemeyiwa Eyesan, the chief executive officer (CEO) of the NUPRC, said collaboration is central to the commission’s regulatory approach.

This, Eyesan said, reflects in the NUPRC’s monthly engagements with industry leaders and its extensive consultations in developing new regulations, guidelines, and regulatory frameworks.

“We firmly believe that resilient energy systems, sustained investment and long-term growth can only be achieved through strong partnerships,” she said.

Eyesan said the global energy landscape is changing rapidly due to geopolitical shifts, climate concerns, technological disruption, artificial intelligence, evolving investment priorities, and rising energy demand.

She said the changes underscore the need for regulators and operators to adapt. (TheCable)