The Edo state government and the Nigerian National Petroleum Company Limited (NNPC Ltd), on Thursday, February 5, agreed to jointly develop a 10,000 barrels-per-day condensate refinery in the state, with completion targeted within 24 to 36 months.
Patrick Ebojele, chief press secretary to governor Monday Okpebholo, disclosed the development in a statement issued in Benin City.
According to the state government, the proposed refinery will be located across Oredo and Orhionmwon Local Government Areas (LGAs) 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.
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.
Okpebholo said, “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.
“Our political will is fully behind this initiative.
“We are committed to protecting investments and ensuring Edo remains safe for business.”
The state government says it will provide the necessary institutional and logistical support to ensure the successful execution of the project.
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 (PIA), 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.
When operational, the proposed condensate refinery is expected to significantly improve fuel availability within Edo State and neighbouring states.
The facility is expected to generate approximately 20 truckloads of Premium Motor Spirit (PMS) each day, alongside an additional 10 truckloads of Automotive Gas Oil (AGO) daily.
The refinery is designed to supply both domestic demand and neighbouring markets, a move expected to reduce fuel shortages in the South-South region.
Beyond fuel supply, the project is projected to boost supporting industries such as logistics, services, and construction throughout its development and operational phases.
According to the Edo state government, the refinery will play a key role in strengthening the state’s industrial base while improving energy security across the region.
To support the project, the state government has committed to providing land, Certificates of Occupancy (CoC), security, and other necessary logistics.
Governor Monday Okpebholo has assured the NNPCL of his administration’s full support and commitment to safeguarding investments in Edo State.
Speaking on the project, the chief downstream investment officer of NNPCL, Ikedichi Dick-Nwoke, said the refinery would position Edo as a leading energy and industrial hub in the South-South region.
He added that the initiative would enhance investor confidence, support the state’s industrialisation drive, and create additional employment opportunities for residents.
In March 2025, the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) granted Eghudu refinery limited a licence to operate a 100,000-barrels-per-day refinery in Edo State.
The condensate refinery represents a significant step toward expanding local refining capacity and promoting subnational economic growth through strategic public-sector collaboration.
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