Nigeria Plans Robust Oil Refinery Expansion by 2025

The Nigerian economy is grappling with challenges following the removal of fuel subsidies and the floating of the naira, which has led to inflation and decreased purchasing power. Despite these issues, Nigeria has seen a surge in investment in its oil and gas sector, particularly with three major Final Investment Decisions totaling around $13.5 billion announced in 2024 by global firms. The new Dangote Refinery, which began producing gasoline in September 2024, is set to transform Nigeria into a self-sufficient producer of refined petroleum products while also disrupting European gasoline markets. However, local refineries are struggling with inadequate crude supply, highlighting the need for increased production and government support to sustain operations. The Nigeria National Petroleum Company Limited is focused on rehabilitating existing refineries and addressing infrastructure challenges, while industry stakeholders emphasize the necessity of boosting crude production to support both local and export demands. With plans for a new licensing round in 2025, the government aims to enhance investment in the sector and alleviate the ongoing challenges faced by local refineries.