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Aradel Holdings Plc is targeting 2027 to begin petrol production at its modular refinery, as the indigenous energy company moves to expand its refining operations following the deregulation of Nigeria’s downstream petroleum market.
The company said the removal of fuel subsidies and the shift towards market-driven pricing have created a more favourable environment for domestic petrol production. The development was disclosed by Temitayo Ogunbanjo, who oversees Aradel’s refining business, in an interview with Bloomberg on the sidelines of a conference in Abuja.
Aradel’s modular refinery currently has a capacity of 11,000 barrels per day and produces products including kerosene, diesel, gas oil and naphtha. The planned addition of petrol production would broaden the facility’s product slate and deepen the company’s presence across Nigeria’s downstream energy value chain.
Deregulation Opens Path to Petrol Production
According to Ogunbanjo, the deregulation of the downstream petroleum sector has created a clearer commercial pathway for Aradel to manufacture petrol locally.
The change comes as Nigeria continues to encourage domestic refining as part of efforts to reduce reliance on imported petroleum products and strengthen local supply.
For Aradel, the transition to petrol production represents another stage in its integrated business model, which spans crude oil production, refining and petroleum-product distribution.
Refinery Expansion Under Consideration
Beyond the planned petrol production, Aradel is also evaluating an expansion of its modular refinery.
The company is examining potential sources of crude feedstock as well as the logistics required to move products to domestic and international markets.
The additional capacity could provide room for Aradel to increase its contribution to Nigeria’s refined-product supply while also strengthening its ability to participate in export markets.
Aviation Fuel Also on the Radar
Aradel is also considering investment in aviation fuel production, with the company assessing opportunities to supply the product to international markets, including Europe.
The potential investment would further diversify the company’s refining portfolio and position its facilities to serve both domestic demand and export opportunities.
Nigeria’s Refining Capacity Expands
Aradel’s plans come as Nigeria’s refining landscape continues to change, with private-sector investments increasingly complementing the country’s existing refining infrastructure.
Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, recently stressed the need for additional refineries across Africa, arguing that even the Dangote Petroleum Refinery, despite plans to increase its capacity to 1.4 million barrels per day, would not by itself satisfy the continent’s overall refining needs.
Against this backdrop, Aradel’s planned petrol production could add another domestic source of refined gasoline supply when the facility begins operations in 2027.
The company’s move also highlights how Nigeria’s downstream deregulation is reshaping investment decisions, with local refiners increasingly assessing petrol production and other refined products based on market opportunities rather than the former subsidy regime.
