According to the Department of Petroleum Resources, Nigeria is expected to become a net exporter of petroleum products by 2022. In 2022, the country should have a refining capacity of 1,475 kb/d, with 375 kb/d from 27 modular refineries, 650 kb/d from the Dangote refinery and 450 kb/d from the state-owned refineries after their rehabilitation. In 2019, Nigeria produced only 10 kb/d of refined products in 2019, accounting for 2% of the total consumption (420 kb/d). The country had a total refining capacity of about 450 kb/d in 2019, but most of it is not operational. The production of refined products declined from 91 kb/d in 2017 to 10 kb/d in 2019 (-89%).
The state-owned Nigerian National Petroleum Corporation (NNPC) plans to transfer its four refineries to private firms under operation and maintenance contracts. The four NNPC refineries (Warri, Kaduna and Port Harcourt I and II), which have a total capacity of 445,000 bbl/d but have a very low capacity utilisation rate (2.2% in 2019), are currently being rehabilitated. They will be handed over after the revamp. The public-private partnership (PPP) will at first concern only one refinery. It will be expanded to the two others at a later stage.
The Nigerian conglomerate Dangote Group is investing US$12bn in a 650,000 bbl/d refinery in Lekki (Lagos State), which is slated for completion in 2022. Once built, the refinery will be able to accommodate multiple grades of domestic and foreign crude and process these into high-quality gasoline, diesel, kerosene, and aviation fuels that meet Euro 5 standards. As of August 2020, the refinery project was 71% complete.
Interested in World Refineries?
Use this powerful business intelligence tool to assess current and future production capacities of oil products by country and by zone. Gain insight into companies' asset portfolios and future trends for refined oil production capacities, giving you the ultimate edge for strategy and decision-making.