Tinubu Aims for Nigeria to Refine All Domestic Crude Locally

The Minister of Budget and Economic Planning, AbubakarBagudu, yesterday noted that the aspiration of the current administration led by President Bola Tinubu is to ensure value-addition to the country’s God-given resources, explaining that the ambition of Nigeria is to see that all the crude oil produced in-country is refined locally.

He explained that although two years ago Nigeria had one of the most distorted pricing of refined petroleum products, the reforms undertaken by Tinubu have helped to stop all the distortions.

He spoke on the closing day of the Global Commodity Insights Conference on West African Refined Fuel Market, organised by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in partnership with S&P Global.

Nigeria’s oil and gas sector has seen significant underinvestment compared to its peers, but the current administration’s reforms are aiming to address this issue.
The Nigerian government’s extension of multilateral cooperation and sustained support have created an attractive environment for investment in the industry. The aim is to generate double-digit growth and refine all produced in Nigeria and West African countries. The Authority Chief Executive, NMDPRA, Farouk Ahmed, praised President Tinubu for his support and praised the agency’s independence.
Ahmed emphasized that the president has never interfered in the agency’s regulatory activities, and the agency is courageous in its pursuit of the best interest of Nigerians. He also acknowledged in-house support from executive directors.

The Nigerian National Petroleum Market Development Authority (NMDPRA) has called on stakeholders to follow its regulations and policies, urging Nigeria, West Africa, and Africa to move forward as advanced countries. The regulator has also highlighted the need to make West Africa a petroleum products trading hub, requiring coordination across refining capacity, supply capabilities, logistic networks, operational excellence, regulatory alignment, and adoption of a harmonised, transparent, and robust refined product market pricing.

To ensure a thriving West Africa product pricing and trading market, operational stability of refineries is crucial. The NMDPRA has set a responsibility matrix with short to medium-term timelines for ensuring all operational refineries operate at optimal output to meet the region’s growing demand for refined products. The timeline is fourth quarter 2025, with regional regulatory bodies working closely together.

The NMDPRA has also agreed on a harmonised regional market framework, regulatory policy, and incentives to attract investment in greenfield refinery products. The timeline is immediate to short term, with monthly monitoring of production levels and outputs. Financial institutions in the region, including government, financial institutions, African Finance Corporation, Afrexim Bank, African Energy Bank, and private investors, will be encouraged to create structures, innovation, and financial instruments to finance infrastructural gaps.

Source: thisdaylive.com

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