The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has confirmed that the Kaduna Refinery rehabilitation project has reached 81.1% completion.
Speaking during a recent briefing, NMDPRA’s Chief Executive Officer, Farouk Ahmed, emphasized that the project is a crucial step toward reducing Nigeria’s dependence on fuel imports and shielding the economy from the volatility of international crude oil markets.
“Kaduna Refinery is now over 81% complete. However, even when we achieve full completion, we must also consider the state of the pipelines connected to it. That’s another major component that must be addressed,” Ahmed said.
He explained that the refinery’s rehabilitation supports NMDPRA’s broader strategy to enhance Nigeria’s domestic refining capacity—a key factor in achieving long-term energy security.
Ahmed also noted that in addition to Kaduna, major restoration efforts are underway at the Port Harcourt and Warri refineries. Privately owned facilities, such as the Dangote Refinery, are also contributing to the national refining landscape.
Highlighting the economic benefits, Ahmed said increased local refining will reduce exposure to global oil price fluctuations and ease the financial burden of fuel imports, especially in a country heavily reliant on crude oil exports for revenue.
“While lower oil prices might benefit consumers, they reduce government income. At a production level of 1.4 million barrels per day, even a small price drop has significant fiscal implications,” he added.
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NMDPRA also oversees operations at crude oil refineries, modular plants, petrochemical and gas facilities, and the broader distribution network. Of Nigeria’s 10 licensed refineries, with a combined capacity of 1.2 million barrels per day, only about 57.8% are currently active due to operational challenges.
The Kaduna Refinery and Petrochemicals Company (KRPC) began its rehabilitation in Q4 2024, as announced by the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri.
Earlier this year, the Nigerian National Petroleum Company Limited (NNPC Ltd.) reiterated that both the Kaduna and Port Harcourt refineries are undergoing major overhauls aimed at meeting international standards.
As Kaduna approaches full reactivation, stakeholders anticipate it will significantly boost local supply, reduce pressure on foreign exchange used for fuel imports, and contribute to stabilizing the Naira.
