Nigeria Targets 100% Local Crude Refining by 2030 — NMDPRA

By Divine Macaulay · August 11, 2026

S&P Global reported that the Nigerian National Petroleum Company (NNPC) was initially expected to supply a significant portion of the refinery’s crude requirements but faced limitations following the commencement of the refinery’s operations in 2024 due to existing forward-sale commitments.

Nigeria plans to channel all of its crude oil production to domestic refineries by 2030 as the country ramps up refining capacity and seeks to reduce dependence on imported petroleum products.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) disclosed that the government is targeting domestic refining of the country’s entire crude output as production is projected to rise to three million barrels per day by 2030.

According to a report by S&P Global, Nigeria produced about 1.74 million barrels of crude oil per day in June, while its current domestic refining capacity stands at approximately 1.12 million barrels per day.

The NMDPRA 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.

Rabiu Umar, NMDPRA chief executive officer, said the government was determined to end the long-standing practice of exporting crude oil while importing refined petroleum products.

“The Federal Government wishes to end the pattern where much of the country’s crude volumes are exported and refined products imported,” Umar said.

He added that the government was working to ensure that all crude produced locally would eventually be processed within the country.

“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,” he said.

Umar also highlighted the role of the Dangote refinery in expanding Nigeria’s refining capacity, noting that the facility plans to double its processing capacity to 1.4 million barrels per day.

The NMDPRA said it was also working to address crude supply challenges confronting domestic refineries and ensure compliance with the Domestic Crude Supply Obligation (DCSO) established under the PIA.

Data released by the NUPRC on August 10 showed that 53.7 million barrels of Nigerian crude were supplied to domestic refineries in the second quarter of 2026.

Of that volume, 52.6 million barrels were supplied to the Dangote refinery, while the facility had been offered 68.1 million barrels—enough to meet its crude requirements for the period.

Dangote’s crude supply challenge

The Dangote refinery, which supplies a substantial share of Nigeria’s refined petroleum products, has previously raised concerns over the availability of sufficient and reliable crude feedstock.

The refinery has consequently sourced crude from international markets to sustain operations and support its expansion.

Under the PIA, which came into effect in 2021, the NUPRC has the authority to impose Domestic Crude Supply Obligations on upstream operators and require them to allocate specified volumes of crude and condensate for domestic sale.

A spokesperson for the NUPRC confirmed that discussions were ongoing with relevant government agencies and crude suppliers on enforcing 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 development comes amid persistent gaps between crude volumes offered to domestic refineries and actual deliveries.

In May, the NUPRC said upstream producers offered 68.7 million barrels of crude to domestic refiners in the first quarter of 2026 but supplied less than half of the volume.

The commission attributed the shortfall largely to disagreements over pricing between crude producers and domestic refiners.