By Àkànní Olúwaségún Michael
Nigeria’s refining sector crossed a significant milestone in May 2026 as local refineries operated above their installed capacity, helping domestic fuel supply move closer to meeting national demand and reinforcing the country’s push toward energy self-sufficiency.
According to the Midstream and Downstream Petroleum Factsheet released by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), average refinery capacity utilisation reached 101.25 percent during the month, indicating that some refining facilities processed volumes above their original design capacity through operational improvements and efficiency gains.
The strong refinery performance translated into higher domestic fuel output, with local refineries producing an average of 44.7 million litres of Premium Motor Spirit (PMS), commonly known as petrol, per day in May. Of that volume, 41.5 million litres were supplied to the domestic market.
The increased output pushed national fuel supply close to the country’s estimated daily petrol demand of 50 million litres. Average PMS supply stood at 47.4 million litres per day, while actual consumption averaged 46.3 million litres daily, suggesting that domestic supply was largely sufficient to meet market requirements during the period.
The figures mark a notable shift for Nigeria, which has historically relied heavily on imported petroleum products to bridge supply gaps despite being Africa’s largest crude oil producer.
The report also showed robust production across other refined products. Automotive Gas Oil (AGO), commonly known as diesel, averaged 24.5 million litres per day, while aviation turbine kerosene (ATK), or jet fuel, recorded daily output of 21.9 million litres.
The improved refining performance comes amid ongoing efforts by the Federal Government to strengthen domestic processing capacity, reduce import dependence and retain more value within the local economy.
Fuel inventory levels remained healthy during the month, providing additional support for market stability. Petrol stock sufficiency stood at 16 days, while diesel reserves were sufficient for 31 days.
Aviation fuel recorded the highest stock cover at 94 days, reflecting ample availability across the segment. Liquefied petroleum gas (LPG), commonly known as cooking gas, had stock sufficiency of 11 days.
Industry observers have increasingly pointed to expanding local refining capacity as a critical factor in improving Nigeria’s energy security and reducing exposure to international fuel supply disruptions and foreign exchange pressures.
In the modular refining segment, smaller operators also contributed to domestic fuel production. WalterSmith Refinery, Edo Refinery and Aradel collectively supplied an average of 648,000 litres of diesel per day during May, with utilisation rates ranging from 62.94 percent to 91.66 percent.
The latest NMDPRA data suggest that Nigeria’s refining sector is gaining momentum, with domestic production now supplying the bulk of national fuel requirements and refinery utilisation exceeding installed capacity for the first time in recent years.
For policymakers pursuing fuel self-sufficiency, the May performance provides one of the clearest indications yet that investments in domestic refining are beginning to translate into tangible improvements in fuel supply and market resilience.
