Reaction as Nigeria Finally Resumes Local Crude Oil Refining After 25 Years

• Minister Atiku Bagudu credited Nigeria’s resumption of local crude oil refining after 25 years to President Tinubu’s economic reforms, including selling crude oil in naira and removing fuel subsidies
• Despite security challenges like pipeline vandalism, Nigeria has exceeded its oil production targets and aims to increase refining capacity significantly by 2030
• The 2025 budget supports fiscal discipline while promoting social welfare, infrastructure, and investor confidence, reflecting tangible progress under the “Renewed Hope Agenda”

Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.

Minister of Budget and Economic Planning, Atiku Bagudu, credited Nigeria’s resumption of local crude oil refining after 25 years to President Bola Tinubu’s bold economic reforms.

Bagudu revealed this in an interview for a television documentary commemorating Tinubu's second anniversary in power, according to a statement released by Special Adviser on Information and Strategy, Bayo Onanuga.

“For the first time in 25 years, Nigeria is refining oil. Mr President was courageous enough to allow crude sales in naira to our refiners,” Bagudu said, noting that this ends decades of reliance on imported petroleum products, which strained the economy.

As important measures propelling growth, he emphasised the elimination of fuel subsidies, the unification of the foreign exchange market, and the policy of selling crude oil in naira.

“We were losing 5% of our GDP on fuel subsidies—money going to just a few,” he added.

Despite acknowledging security issues such as pipeline vandalism, Bagudu maintained his optimism.

He stated,

“Although we surpassed the oil production target of 2.1 million barrels per day, security remains a key challenge.”

With NNPC's refining output aiming for 200,000 barrels per day by 2027 and 500,000 by 2030, he emphasised Tinubu's goal to increase production to 2 million barrels per day by 2027 and 3 million by 2030.

To increase efficiency, Tinubu nominated Bayo Ojulari, a former Shell executive, as managing director of NNPC in April 2025.

The board consists of 11 members. Bagudu pointed to stable foreign exchange, four consecutive quarters of economic growth, and rising investor confidence from nations like Saudi Arabia and Brazil.

“Investors want credible, transparent policies,” he said, likening the reforms to a fitness regimen: “It might feel painful now, but the muscles of progress are forming.”

The N54.99 trillion 2025 budget preserves fiscal restraint while bolstering social welfare, infrastructure, and security. Bagudu commended the cooperation of the Presidential Economic Coordination Council and Tinubu's management of inherited N22.7 trillion in Central Bank funding.

“This is two years well spent,” he concluded, affirming the “Renewed Hope Agenda’s” tangible results.

Another Nigerian company set to construct refinery

Legit.ng reported that Aiteo Eastern E&P Company Limited, a Nigerian energy giant, has partnered with Mozambique’s national petroleum company, PETROMOC, to build a major refinery in the southern African nation.

The agreement, signed recently, will see the construction of a refinery capable of producing 200,000 barrels of fuel per day.

According to Mozambique’s President, Daniel Chapo, the refinery is expected to be completed within 24 months, providing substantial growth for the country’s energy infrastructure.

Source: Legit.ng