Nigeria targets 2030 to refine all crude oil domestically
Nigeria is targeting 2030 to stop exporting crude oil for processing abroad as the government moves to channel the country’s entire oil production to local refineries.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) said the plan is tied to the expansion of domestic refining capacity and efforts to strengthen Nigeria’s energy security.
According to S&P Global, Nigeria produced about 1.74 million barrels of crude oil per day in June and is targeting production of 3 million barrels per day by 2030.
Rabiu Umar, NMDPRA chief executive officer, said the government wants to end the long-standing practice of exporting crude while importing refined petroleum products.
“We are engaging the Nigerian Upstream Petroleum Regulatory Commission to ensure that every molecule of our 3 million b/d that we hope to achieve in the coming years is refined locally,” Umar said.
Nigeria currently has about 1.12 million barrels per day of domestic refining capacity, according to the NMDPRA.
The authority said it is working with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to enforce provisions of the Petroleum Industry Act (PIA) requiring oil producers to supply crude to domestic refineries.
Umar said the Dangote refinery is expected to play a major role in expanding local refining capacity, particularly as the facility plans to increase its processing capacity to 1.4 million barrels per day.
The NMDPRA CEO also acknowledged challenges faced by local refineries in securing sufficient crude feedstock, saying efforts are underway to address supply shortages and ensure compliance with domestic crude supply obligations (DCSO).
53.7m barrels supplied to domestic refiners in Q2
Data published by the NUPRC on August 10 showed that domestic refineries received 53.7 million barrels of Nigerian crude in the second quarter of 2026.
The Dangote refinery accounted for 52.6 million barrels of the total volume.
The upstream regulator said 68.1 million barrels had been offered to the Dangote refinery during the period, a volume that would have met the facility’s crude requirements.
The refinery has previously identified the availability of adequate and reliable crude supplies as one of the challenges affecting its operations and expansion.
S&P Global reported that the facility has consequently turned to international sources to supplement domestic crude supplies.
The Dangote refinery, which has become a major source of refined petroleum products in Nigeria, is estimated to account for as much as 90 percent of the country’s refined products supply.
Government moves to enforce crude supply obligations
Under the PIA, which came into effect in 2021, the NUPRC has the authority to impose domestic crude supply obligations on upstream operators and licensees.
The law also allows the regulator to require producers to allocate a specified portion of their crude and condensate production for sale to domestic refineries.
A NUPRC spokesperson told Platts, S&P Global Energy’s pricing and news service, that discussions were ongoing with relevant government agencies and crude suppliers over enforcement of the provision.
“We have been holding meetings involving the NMDPRA, Ministry of Finance, and crude suppliers on the enforcement of this provision of the law,” the spokesperson said.
The issue of inadequate domestic crude supply has persisted despite obligations under the PIA.
In May, the NUPRC disclosed that oil producers offered 68.7 million barrels of crude to domestic refineries in the first quarter of 2026, but only 28.5 million barrels were ultimately supplied.
The commission attributed the shortfall to disagreements over pricing between crude producers and domestic refiners.
With Nigeria seeking to raise crude production to 3 million barrels per day by 2030, regulators say enforcing domestic supply obligations will be crucial to ensuring that increased production translates into higher local refining output rather than increased crude exports.
