Seven New Modular Refineries Expected to Start Operations in Nigeria in 2027

Nigeria could add seven modular refineries to its domestic petroleum industry in 2027, with the proposed facilities expected to contribute a combined refining capacity of 83,000 barrels per day.

The projection was presented by George Maher-Bonnett of Argus Media during the OTL Africa Downstream conference in Lagos on Wednesday, as industry stakeholders examined developments in the African energy market.

According to his presentation, titled African Energy Outlook, Nigeria had four operational modular refineries in September, with a combined capacity of 32,000 barrels per day.

The projected additions would significantly increase the contribution of smaller refineries to the country’s domestic processing capacity. However, the presentation did not identify the proposed facilities, their owners, locations or individual commissioning schedules.

Maher-Bonnett also discussed the growing influence of the Dangote Petroleum Refinery on Nigeria’s fuel supply. The 700,000 barrels per day facility was described as operating at a high rate, with steady petrol production.

The presentation further noted a decline in Nigerian fuel demand during the year, attributing the development partly to higher prices.

It also highlighted changes in regional petroleum trade, explaining that increased domestic production was reducing the attractiveness of some fuel imports from Europe into West Africa.

Ghana’s Tema refinery, with a capacity of 45,000 barrels per day, was also identified as an emerging contributor to the country’s domestic refining capacity.

The expected commissioning of the seven Nigerian facilities could further reshape the country’s refining sector if the projected projects are completed as planned.

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