West Africa’s Oil Refining Capacity Hits 1.365 Million Bpd

Abuja, Nigeria — The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has announced that West Africa’s refining capacity has hit 1.365 million barrels per day (mbpd), signaling a transformative era for the region’s petroleum industry.

The announcement was made by Engr. Farouk Ahmed, Chief Executive of the NMDPRA, during the Global Commodity Insights Conference on West African Refined Fuel Market, jointly hosted with S&P Global Insights in Abuja.

Engr. Ahmed highlighted the role of major facilities—like Nigeria’s 650,000 bpd Dangote Refinery, and upgraded plants in Ghana, Senegal, Niger, and Côte d’Ivoire—in expanding regional capacity and reducing reliance on petroleum imports.

Despite West Africa’s position as a leading producer and consumer, Ahmed expressed concern that the region still depends on foreign pricing models that fail to reflect its unique economic and supply chain realities.

“To ensure accurate price discovery and boost investment, a regional pricing index tailored to Africa is essential,” he stated. “This will drive infrastructure growth, promote transparency, and support energy security.”

He emphasized that the initiative is rooted in reforms championed under President Bola Tinubu’s administration, including the Petroleum Industry Act 2021 and deregulation measures that have advanced Nigeria’s downstream sector.

The NMDPRA chief also disclosed that West Africa trades about two million metric tons of gasoline monthly, with 69% imported and only 31% refined locally. However, projections indicate the region could gain an additional 1.2 million bpd by 2030, driven by new projects and upgrades.

Part of the strategy includes developing pilot pricing indices—covering products like petrol, diesel, cleaner fuels, and LNG—in partnership with S&P Global. These indices aim to support investment, bilateral trading, and financial planning across Africa.

Engr. Ahmed urged stakeholders to collaborate in creating a transparent and inclusive petroleum trading ecosystem. “Through shared vision and innovation, we can leave a legacy of market integrity for Africa,” he declared.

By Makinde oyinkansola| July 22, 2025