NMDPRA affirms PIA compliance as NCDMB takes 30% stake in refinery, deepening local content drive

Waltersmith Petroman Oil Limited has marked a major in Nigeria’s push for energy self-sufficiency, announcing the successful expansion of its refinery capacity to 10,000 barrels per day (bpd), a development expected to strengthen domestic refining and reduce dependence on fuel imports.

The achievement came into focus during an official inspection visit by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Nigerian Content Development and Monitoring Board (NCDMB) to the company’s Phase 2 facility located in Ibigwe.

The project is backed by a blend of private and institutional financing, including support from the Africa Finance Corporation (AFC) and the Bank of Industry (BoI), underscoring the growing viability of public-private partnerships in delivering large-scale energy infrastructure.

Looking ahead, Waltersmith is set to deepen its footprint beyond refining with plans to develop the Waltersmith Industrial and Innovation Park, a Free Trade Zone anchored on gas-to-power infrastructure. The initiative is expected to attract petrochemical and manufacturing investments, in line with Nigeria’s “Decade of Gas” agenda and broader industrialisation goals.

The delegation, led by NMDPRA’s Authority Chief Executive, Saidu Mohammed, alongside representatives of the NCDMB, assessed the operational readiness of the upgraded facility. The Phase 2 expansion effectively doubles Waltersmith’s refining capacity from 5,000 to 10,000 bpd, positioning the company as a critical player in Nigeria’s domestic refining drive.

Mohammed commended WalterSmith, noting that what it has accomplished is no small feat.

“This is a powerful demonstration that Nigerians have both the capability and responsibility to take charge of the midstream sector which is the true engine room of our economy,” he said.

The ACE, in his remarks, highlighted the company’s compliance with the Petroleum Industry Act (PIA) 2021 and commended its operational standards.

Chairman of Waltersmith, Abdulrazaq Isa, said the expansion underscores the company’s technical discipline and alignment with national energy policy objectives, while maintaining compliance with regulatory standards, particularly those set by the NMDPRA.

“We are moving Nigeria beyond an extractive oil economy to one focused on value creation. By refining locally, integrating upstream resources, and building an industrial hub, we are laying a sustainable foundation for long-term economic growth,” Isa said.

He stressed that the upgraded facility introduces an expanded product slate, including Premium Motor Spirit (PMS) and Aviation Turbine Kerosene (ATK), a move expected to improve supply reliability across Nigeria’s transportation and aviation sectors, while advancing the shift from crude export dependence to value addition.

He further revealed that regulatory approval for full operations is nearing completion, with the inspection serving as a final assessment ahead of the issuance of a Licence to Operate (LTO) for Phase 2.

“As we enter this next phase, our continued collaboration with the Authority is critical. We are not just building a refinery; we are building a self-sustaining industrial city that contributes meaningfully to Nigeria’s energy security and regional economic development,” Isa concluded.

However, a key feature of the project is Waltersmith’s partnership with the NCDMB, which holds a 30 per cent equity stake in the refinery.

The Director Legal Services NCDMB, Dr Naboth Onyesoh who represented the Executive Secretary and conveyed the Board’s delight at the success of Waltersmith modular refinery. He described the firm as a model in local content implementation, especially in direct and in-direct job creation, capital retention, industrialization, import substitution and value addition to crude oil and gas resources.

“Our partnership with WalterSmith underscores the power of collaboration in driving local content development. This investment has not only catalyzed a scalable refining operation but has also created substantial jobs for Nigerians and strengthened our collective capacity to reduce dependence on imports while improving national living standards,” he said.