Nigeria to invest $3bn on refineries to meet 17.3m metric tons of products

Nigeria needs to invest about $3.09 billion into Refinery in order to meet the growing demand of her 17.3 million Metric tons of petroleum products

The Nigerian National Petroleum Corporation (NNPC) said Nigeria’s petroleum product demand would grow to 17.3 million metric tons by 2025, up from the 15.1 million MT in 2020.

The Group Managing Director, Mallam Melee Kyari said investment opportunities worth nearly $3.097 billion currently exist in the country’s condensate refineries’ space. Kyari explained this yesterday in Lagos in his keynote address at the 15th Oil Trading and Logistics (OTL) Africa Downstream Week.

According to Kyari who was represented by the Group Executive Director, Sownstream, Adetunji Adeyemi, between $1.6 billion and $2.7 billion were required by the corporation to improve the supply and distribution of petroleum products, revamp Liquefied Petroleum Gas (LPG) infrastructure, and build Compressed Natural Gas (CNG) plants in the country.

The theme of the conference was, “Downstream in Transition: Getting Set.”

Kyari added that the country would need a refining capacity of about 1.52 million barrels per stream day (MBPSD) to meet its petrol requirement in the next four years.

He said, “As Nigeria’s demand for petroleum products is expected to grow from 15.1 million MT in 2020 to 17.3 million MT by 2025, the country needs a refining capacity of about 1.52 million barrels per stream day (MBPSD), to meet its PMS requirement in the next four years.

“The NNPC refineries’ 445,000 BPSD and Dangote Refinery’s 650,000 BPSD running at 60 per cent and nameplate capacity, respectively, would supply 76 per cent of that requirement, leaving a shortfall of about 17 million litres of PMS daily.