The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has confirmed that the rehabilitation of the Kaduna Refinery has reached 81.1% completion, marking a significant step toward reducing Nigeria’s reliance on imported petroleum products.
Chief Executive Officer of NMDPRA, Mr. Farouk Ahmed, disclosed this on Tuesday, stating that the refinery’s progress is part of a broader national effort to enhance domestic refining capacity and stabilize the economy against global oil price shocks.
“Kaduna Refinery’s overall progress is 81.1%, and we have broken it down into work packages. But even after completion, the pipeline network feeding the refinery will require major upgrades,” Ahmed said, highlighting the dual-track nature of the rehabilitation.
The refinery, one of the country’s key state-owned facilities alongside Port Harcourt and Warri, is undergoing a comprehensive overhaul led by the Nigerian National Petroleum Company Limited (NNPC Ltd.) to meet international standards.
Ahmed emphasized that strengthening local refining operations is critical to achieving energy security and reducing foreign exchange pressure caused by fuel imports. He also pointed to the ongoing support and regulation of both modular and large-scale refinery projects, including the private-sector-led Dangote Refinery, which is currently increasing output.
He noted that while recent global oil price drops may benefit consumers, they significantly impact government revenue, given that Nigeria exports approximately 1.4 million barrels of crude oil per day.
“Lower oil prices mean reduced revenue, which weakens our budget implementation and affects the Naira. Increasing our refining capacity is key to cushioning these effects,” Ahmed explained.
Currently, only 57.8% of Nigeria’s licensed refineries—despite a combined capacity of 1.2 million barrels per day—are operational due to various constraints. The Kaduna Refinery’s ongoing rehabilitation is expected to shift this narrative, contributing meaningfully to national fuel sufficiency and foreign exchange savings.
In 2023, the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, had announced that the Kaduna Refinery overhaul would begin in Q4 2024. As the facility nears full restoration, stakeholders anticipate a significant reduction in fuel importation and a boost to local energy availability.
The refinery’s completion is projected to aid the Naira’s stability and serve as a cornerstone for Nigeria’s energy transition strategy.
