- The Federal Government plans to end crude oil exports by expanding local refining and positioning Nigeria as Africa’s refining hub.
- The NMDPRA is boosting energy security, upgrading infrastructure, and streamlining regulation to strengthen Nigeria’s petroleum industry and regional trade.
The Federal Government plans to stop exporting crude oil as Nigeria expands its refining capacity and positions itself as Africa’s leading hub for refined petroleum products.
The Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Rabiu Umar, announced the plan on Monday, August 3, 2026 at the 49th Nigeria Annual International Conference and Exhibition organised by the Society of Petroleum Engineers (SPE) Nigeria Council in Lagos.
Umar said Nigeria’s growing refining capacity would allow the country to process more of its crude locally instead of exporting it in its raw form. He said investments in private and modular refineries have accelerated Nigeria’s transition from a crude oil exporter that imports refined fuel to a regional refining hub.
Furthermore, he said ongoing refinery projects and planned expansions could enable Nigeria to refine its projected daily crude production of three million barrels within the next few years. He described the development as a major shift that would connect the upstream, midstream and downstream sectors while increasing exports of refined petroleum products instead of crude oil.
Umar mentioned the NMDPRA and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) are enforcing the domestic crude supply obligation. This is to guarantee adequate feedstock for local refineries. He said Nigeria would create more value by refining crude domestically and expanding activities in the gas and petrochemical industries.
Meanwhile, he identified energy security, gas expansion and regulatory excellence as the agency’s top priorities. He said the NMDPRA is building strategic petroleum product reserves near major markets to reduce supply disruptions and prevent sharp price increases during global market shocks.
Umar added that NMDPRA is removing obstacles that delay the development of pipelines, depots and strategic storage facilities. He said the agency is working with the Nigerian National Petroleum Company Limited (NNPC Ltd.) under the Petroleum Industry Act. The plan is to rehabilitate critical infrastructure, strengthen asset integrity, sustain throughput and reduce operational losses.
In addition, he highlighted that the regulator is simplifying licensing procedures, reducing bureaucracy and speeding up approvals to create a predictable investment environment. He stressed that the NMDPRA wants to support investors by providing transparent and efficient regulatory processes instead of acting solely as an enforcement agency.
Furthermore, Umar disclosed that Nigeria is working with other West African regulators and S&P Global Commodity Insights to establish a regional petroleum pricing benchmark. He said the initiative would harmonise fuel specifications across West Africa, promote cross-border petroleum trade and strengthen Nigeria’s position as a regional trading hub.
He urged stakeholders to implement existing policies and strategies instead of introducing new ones.
The Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission, Oritsemeyiwa Eyesan, said collaboration remains essential to developing Nigeria’s oil and gas industry as the global energy landscape evolves. She said geopolitical tensions, climate concerns, technological innovation, artificial intelligence, changing investment priorities and rising energy demand continue to reshape the energy sector.
Eyesan said discussions at the annual conference have helped shape reforms in Nigeria’s petroleum industry. She added that cooperation among government agencies, regulators, operators, investors, service providers and industry professionals has strengthened the country’s upstream sector.
The Chairman of the SPE Nigeria Council, Francis Nwaochie, said Nigeria must strengthen institutions, solve industry challenges, attract investment and sustain collaboration to secure its energy future. He said the country’s abundant hydrocarbon resources, expanding gas economy, resilient indigenous operators, skilled workforce and growing technology ecosystem provide a strong foundation for growth.
Nwaochie cited the 2025 oil and gas licensing round, the Decade of Gas initiative and the Federal Government’s plan to settle verified debts owed to power generation companies and gas suppliers through a ₦4 trillion government-backed bond as signs of increasing stability and investor confidence.
He added that the industry must convert resilience into higher oil production, expanded gas commercialisation, easier business operations, stronger regulatory coordination, deeper local content participation and greater access to long-term financing.