The Nigerian government has issued a construction licence for a new refinery with a proposed capacity of 450,000 barrels/day in Ogun State, southwest Nigeria.
The project will be led by Gasoline Associates International Ltd (GAIL) and is expected to compete in scale with existing domestic refineries, including the 650,000 b/d Dangote Refinery in Lagos.
In a statement released on 6 August and cited by local press, GAIL chairman and chief executive Dr Lukman Akande Bolaji confirmed the licence approval and outlined the company’s development timeline.
The facility would launch with an initial throughput of 100,000 b/d, with expansion plans already in place to ramp up to 450,000 b/d over time, says Bolaji.
“Our ambition goes beyond crude oil refining,” Bolaji was quoted as saying. “We aim to stimulate sustainable economic development through innovation, local content, and targeted partnerships.”
The facility is expected to produce multiple refined petroleum products, including Premium Motor Spirit (PMS), Automotive Gas Oil (AGO), Liquefied Petroleum Gas (LPG), and Jet A1 (ATK).
GAIL also plans to integrate petrochemical units within the site, in alignment with government objectives to diversify industrial output and maximise in-country value.
Nigeria, despite being Africa’s leading crude oil producer, continues to import a large share of its refined fuel requirements, putting pressure on foreign exchange and public finances.
In response, the government has stepped up efforts to encourage investment in domestic refining, with several large-scale projects underway.
GAIL’s refinery joins a growing list of such projects, including a recently announced facility in Ondo State, also in the southwest.
While the cost of the Ogun State plant has not yet been disclosed, the Ondo project is reportedly valued at $15bn. GAIL’s refinery is likewise expected to attract multi-billion-dollar investment.
If delivered on schedule, the facility would represent a significant step toward Nigeria’s long-standing target of self-sufficiency in fuel production, while reducing the country’s heavy reliance on fuel imports and boosting downstream capacity.