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Domestic Refineries to Need 1.5m bpd in Medium Term – IPPG

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The Independent Petroleum Producers Group (IPPG) says domestic refineries may require more than 1.5 million barrels of crude oil per day (bpd) in the medium term.

The Chairman of IPPG, Adegbite Falade, said this at the third Nigeria Oil Refining Summit (NORS) 2026 on Monday in Lagos.

The summit had the theme “Refining For Value: Linking Upstream Supply to Downstream Demand”.

Falade, who is also the Managing Director of Aradel Holdings Plc, said the rising refinery demand would require corresponding growth in crude production.

He said Nigeria’s liquid production stood at about 1.

68 million bpd as of August, according to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

Falade said the projected demand would leave a narrow margin between available production and volumes required for exports and other upstream commitments.

He said the margin could be further affected by production outages, crude grade mismatches, OPEC commitments and evacuation disruptions.

“This is why the upstream industry must be placed at the centre of the refinery conversation,” he said.

Falade said Nigeria had about 37.01 billion barrels of crude oil and condensate reserves and 215.19 trillion cubic feet of gas reserves as of Jan. 1.

He, however, said converting the reserves to sustained production was critical to meeting rising domestic demand.

“That conversion requires capital. It requires fiscal stability. It requires security. It requires infrastructure. Nigeria cannot refine barrels that are not produced,” he said.

Falade said the solution was not to redistribute limited crude among competing users, but to grow production.

“The answer to rising domestic refining demand is not merely to redistribute a limited pool. The answer is to create more barrels,” he said.

He called for increased exploration and field development, stronger output from marginal assets and investment in crude evacuation infrastructure.

Falade said refinery feedstock must meet the right grade, volume, quality, location, timing and commercial terms.

He said stronger upstream production, reliable evacuation and a transparent domestic crude market would support Nigeria’s ambition to become a regional refining and petrochemical hub.

The summit brought together refinery owners, upstream producers, regulators, policymakers, investors and other stakeholders in the oil and gas value chain.(NAN)

BUSINESS

NNPC Posts N7.2trn Profit amid Revenue Decline

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The Nigerian National Petroleum Company Ltd. (NNPC Ltd.) recorded N7.2 trillion Profit After Tax (PAT) in 2025, a 33 per cent increase from N5.4 trillion.

Group Chief Executive Officer, Bayo Ojulari, disclosed this on Tuesday in Abuja at a media briefing after the company’s AGM and second Earnings Call.

Revenue declined to N34.

5 trillion from N45.1 trillion in 2024.

Ojulari attributed the 24 per cent revenue decline to lower crude oil prices and reduced product volumes following market deregulation.

He said earnings per share rose to N35.

90 from N27.07, while return on equity improved by 200 basis points to 16 per cent.

The company’s declared dividend increased by 35 per cent to N5.8 trillion, while taxes, royalties and other government remittances rose 39 per cent to N22.3 trillion.

 “Stronger earnings in spite of this pressure demonstrate the resilience of NNPC Limited’s operations,” Ojulari said.

He said profit grew because NNPC had improved its operations and maintained discipline across its businesses.

Ojulari said crude oil and condensate production reached a five-year peak of 1.77 million barrels per day.

He added that gas supply reached a three-year high of 7.2 billion standard cubic feet per day.

“Stronger performance gives NNPC Limited more capacity to invest, contribute to public revenue and strengthen Nigeria’s energy security,” he said.

On infrastructure, Ojulari said the mainline of the Ajaokuta-Kaduna-Kano gas pipeline had been completed.

He said work was ongoing on tie-ins to delivery points, beginning with Abuja, followed by Ajaokuta and Kaduna.

According to him, the next milestone is to commence gas flow through the pipeline to industries and power plants.

Ojulari said the company completed the Obiafu-Obrikom-Oben (OB3) gas pipeline in 2026 after several years of challenges.

On the refineries, he said prospective partners under NNPC’s technical equity partnership model had conducted a three-month onsite review.

He said more than 34 engineers participated in the review, adding that NNPC was now concluding the report.

Ojulari said the company was targeting self-sustaining and profitable refineries, with a pathway expected to be defined soon.

He reaffirmed NNPC’s target of producing two million barrels of crude oil daily by 2027 and three million barrels by 2030.

He said gas production targets were 10 billion cubic feet per day by 2027 and 12 billion by 2030.

“NNPC plans to mobilise over 60 billion dollars of investment across the energy value chain,” he added.

Ojulari said more than 1,000 newly recruited professionals joined NNPC in 2025 under its Talent to Value programme.

He said the recruits completed a one-year internship and training programme before being deployed across the company. (NAN)

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FCCPC Calls for Improved Capacity Building on Competition Reporting, Matters

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The Federal Competition and Consumer Protection Commission (FCCPC) says there is a need for sustained capacity building in competition reporting and issues.

The Executive Vice Chairman of FCCPC, Tunji Bello, said this in a statement made available to the News Agency of Nigeria (NAN) in Abuja on Sunday.

Bello described competition matters as a relatively new area in the country adding that it required specialised knowledge among journalists, regulators and other stakeholders.

He said that competition law and consumer protection regulations had made stakeholders’ education a priority for the commission.

Bello said that the FCCPC recently supported the training of judges through the National Judicial Institute (NJI) to deepen understanding of competition-related matters.

He noted that members of the judiciary also required exposure to the nuances of the emerging field.

“We recognised that because it is a new terrain, the judges themselves are not familiar with the nuances.

”So we brought in experts on competition,” he said.

Bello stressed that the media had a critical role in promoting public understanding of competition and consumer protection issues.

“If FCCPC is becoming more known to the public, it is as a result of the kind of publicity you have given us,” he said. (NAN)

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BUSINESS

Fire Guts Customs Western Marine Command Office in Lagos

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Fire gutted the Nigeria Customs Service (NCS) Western Marine Command office in Apapa, Lagos, on Monday, destroying property worth millions of Naira.

The fire, which reportedly started at about 10:23 a.m. from an electrical surge in the conference room, spread to other sections of the building.

Officers on duty made frantic efforts to contain the fire before officials of the Lagos State Fire and Rescue Service arrived at about 10:45 a.

m.

The Deputy Comptroller of Customs, Timothy Jonah, who just resumed at the Command, to take over the affairs from his predecessor, described the incident as unfortunate.

He said: “I just resumed duty to take over, only to witness this fire outbreak.

“Every challenge, though negative, is an opportunity to strengthen our operations.

“In the meantime, we will set up a committee to investigate the cause of the fire.”

He commended the swift response of the personnel on duty and their collaboration with the fire service, saying measures would be taken to strengthen safety protocols and prevent a recurrence. (NAN)

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