The Edo State Government and the Nigerian National Petroleum Company Limited (NNPC Ltd) have agreed to jointly develop a 10,000 barrels-per-day condensate refinery in the state, with completion targeted within 24 to 36 months.
The development was disclosed in a statement issued in Benin City on Thursday by Dr Patrick Ebojele, Chief Press Secretary to Governor Monday Okpebholo.
According to the state government, the proposed refinery will be located across Oredo and Orhionmwon Local Government Areas and is expected to boost local refining capacity, improve fuel supply, and strengthen Edo State’s industrial base.
The project forms part of broader efforts to deepen domestic refining, reduce reliance on imported petroleum products, and drive economic growth through strategic partnerships between subnational governments and national energy institutions.
What they are saying
The Edo State Government says the refinery will play a key role in job creation, poverty reduction, and energy security, while aligning with the Federal Government’s Renewed Hope Agenda.
- “We are delighted to welcome this major investment to Edo. My administration is committed to creating jobs and reducing poverty, in line with the Renewed Hope Agenda of the President,” Governor Monday Okpebholo was quoted to have said in the statement.
- “Our political will is fully behind this initiative. We are committed to protecting investments and ensuring Edo remains safe for business,” the governor added.
The state government says it will provide the necessary institutional and logistical support to ensure the successful execution of the project.
Backstory
Nigeria has for decades relied heavily on imported refined petroleum products despite being Africa’s largest crude oil producer, largely due to limited domestic refining capacity and underperforming state-owned refineries.
- In response, successive administrations have prioritised policies aimed at encouraging local refining through public-private partnerships and subnational initiatives.
- NNPC Limited, following its commercialisation under the Petroleum Industry Act, has increasingly pursued investment-driven downstream projects to expand refining output.
- State governments have also begun positioning themselves as industrial hubs by leveraging land, infrastructure, and regulatory support to attract energy investments.
Within this context, Edo State’s collaboration with NNPC reflects a growing trend of decentralised industrial development focused on energy infrastructure.
More insights
When operational, the proposed condensate refinery is expected to significantly improve fuel availability within Edo State and neighbouring states.
- The facility is projected to produce about 20 truck-loads of Premium Motor Spirit daily.
- It is also expected to deliver an additional 10 truck-loads of Automotive Gas Oil per day.
- The refinery will serve both local consumption and surrounding markets, helping to ease supply constraints in the South-South region.
The project is expected to stimulate ancillary businesses across logistics, services, and construction during and after the development phase.
According to the state government, the refinery will contribute to strengthening Edo’s industrial ecosystem while enhancing regional energy security.
- The Edo State Government has pledged to provide land, Certificates of Occupancy, security, and other required logistics to support the project.
- The governor assured NNPC of his administration’s full backing and commitment to protecting investments in the state.
The Chief Downstream Investment Officer of NNPC Limited, Mr Ikedichi Dick-Nwoke, said the refinery would position Edo as a major energy and industrial hub in the South-South.
He added that the project would boost investor confidence, align with the state’s industrialisation agenda, and expand employment opportunities for residents.
What you should know
In March 2025, the Nigeria Midstream and Downstream Petroleum Regulatory Authority issued Eghudu Refinery Limited in Edo State a 100,000 barrels-per-day refining licence.
The condensate refinery is the latest addition to efforts aimed at deepening local refining capacity and driving subnational economic development through strategic public-sector collaboration.
