HYDROCARBON OIL REFINERIES ACT
Act · Energy
Policy date: 2024-01-01
An Act regulates the construction and operation of petroleum refineries in Nigeria to ensure compliance with safety standards. It targets refinery operators and environmental regulators. This maximises domestic refining capacity and protects public health.
HYDROCARBON OIL REFINERIES ACT
What Is This Policy?
An Act regulating the construction, operation, and licensing of petroleum refineries in Nigeria, providing the framework for both government-owned and private sector petroleum refining.
Who Does It Target?
Petroleum refinery operators (NNPC refineries, Dangote Refinery, etc.) The Department of Petroleum Resources (now NMDPRA) Environmental regulators dealing with refinery impacts Private investors seeking to build refineries
What Does It Aim to Achieve?
Ensure petroleum refineries in Nigeria are built and operated safely, efficiently, and in compliance with health, safety, and environmental standards, maximising domestic refining capacity.
Key Features
Refinery Licensing: No refinery may be constructed or operated without a licence from the relevant authority. Safety Standards: Prescribes safety standards for refinery design, construction, and operation. Environmental Compliance: Refineries must meet environmental standards for emissions, effluent, and waste management. Inspection: Government inspectors may enter and inspect refineries at any time to verify compliance.
Current Status
Rollout Stage: Active Coverage: Nationwide petroleum refining sector Beneficiaries: Economy through domestic fuel production; environment Funding: Private investment; NNPC
How to Access
Refinery investors must obtain a licence from NMDPRA before construction Submit environmental impact assessment before licensing Comply with ongoing inspection and reporting requirements Application method: Apply for refinery licence at NMDPRA at https://www.nmdpra.gov.ng
Important Terms
Operating a refinery without a licence is a serious criminal offence Refineries must maintain product quality specifications set by the regulator Environmental non-compliance may result in shutdown orders
Impact & Metrics
The Dangote Refinery commissioned in 2024 with capacity of 650,000 bpd represents Nigeria's first large-scale private refinery under this regulatory framework.
Official Resources
Website: https://www.nmdpra.gov.ng Contact: Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA)
Legal Framework
The Hydrocarbon Oil Refineries Act is recognized under Section 315 of the 1999 Constitution as an existing law. It operates alongside the Petroleum Industry Act 2021, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) regulations, and the Petroleum Products Pricing Regulatory Agency Act. Nigeria's obligations under the ECOWAS Energy Protocol and the African Petroleum Producers Association (APPA) framework govern regional petroleum refining cooperation.