Expert Alleges Modular Refineries in Nigeria Don’t Produce On-spec Products

•Faults continuous license issuance by NMDPRA

Peter Uzoho

 A renowned process engineering expert with over 40 years’ experience in the oil and gas industry, Mr. Mark Williams, has stated that modular refineries in Nigeria, also known as toping plants, do not produce petroleum products that are up to the country’s or international specification.

Williams added that the Nigerian modular refineries do not have the facility to control the Sulphur content of their products and that those kinds of refineries are no longer in use, wondering why the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) continues issuing licenses for the building of such refineries.

He made the assertions yesterday while speaking virtually at the First Quarter 2025 Press Training & Engagement Session held in Lagos by the Major Energies Marketers Association of Nigeria (MEMAN), with the theme: “Refinery Basics, Gasoline Pricing & Trade Flows in Nigeria.”

He listed the Nigerian modular refineries as the 5000 barrels per day (bpd) Waltersmith Refinery in Ibigwe, Imo State; 2,500bpd Duport Midstream refinery in Egbokor, Edo State; 6000bpd Edo Refinery in Ologbo, Edo State; 10,000bpd OPAC Refinery in Umeseti-Kwale, Delta State; and 11,000bpd Aradel Refinery (formerly Niger Delta Refinery) in Ogbele, Ondo State.

 In his presentation, he explained that a topping or modular refinery was the simplest configuration, with no conversion nor treating of products, adding that they have only the crude distillation unit and basic support operations.

He said the modular refineries cannot control product sulphur levels, noting that, “these types of refineries are no longer in use, because they cannot meet the specifications demanded by regulatory authorities in Nigeria and globally.”

Responding to THISDAY’s question on the issue, Williams further said, “We say that toping refineries do not make on-spec products. That is correct. But they make products that are intermediate, which can be exported. Probably that is the only reason why the Nigerian Mainstream and Downstream Petroleum Regulatory Authority is still giving them licence.

 “But honestly, it’s something to think about. I think that question should be asked directly to the regulators. Technically speaking, their products do not even meet the standards allowed in Nigeria.

“For example, if you look at some standards, 2017, which we are following now, diesel is supposed to be 50 ppm (Parts Per Million). And these plants are not producing petrol which is Premium Motor Spirit (PMS). They are producing essentially diesel.

 “And to produce 50 ppm diesel, you need to put what we call a hydrotreater. Hydrotreater, which means you have to treat the diesel with hydrogen in a catalytic reactor, in a vessel. They call them DHTs (Diesel Hydrotreating Units). If you go to the Dangote, Dangote refinery is the only refinery that has the means to treat diesel as it is in Nigeria.”

 However, for the refineries to meet the right specifications, the expert said they needed to invest some money to upgrade and make their products marketable.

He wondered why substandard products were being allowed in the Nigerian market.

 According to him, the only reasonable reason why the above-mentioned modular refineries should be allowed to produce was that even if they don’t sell in the Nigerian market, they could export those products to refineries where they could process them to make commercially viable products.

In a communique issued at the end of the session and signed by the Executive Secretary of MEMAN, Mr. Clement Isong, the association affirmed that the implementation of the Petroleum Industry Act (PIA) remained firmly on track.

While ongoing debates and discussions were expected, the association said they should be encouraged as part of the natural evolution of a market-driven energy sector.

 MEMAN maintained that the transition from a state-controlled system to a competitive, deregulated market was essential for fostering efficiency, transparency, and long-term economic growth.

 “However, this transition requires patience, adaptation, and trust. As the market stabilizes, challenges will arise, and resistance from those accustomed to price control is inevitable. But with robust regulation, industry collaboration, and public transparency, Nigeria can fully realize the benefits of this transformation. A well-functioning, deregulated market will attract more investment, improve efficiency, and create a more competitive landscape that benefits both businesses and consumers.

“As key industry stakeholders, MEMAN strongly supports the role of regulatory agencies such as the NMDPRA and the Federal Competition and Consumer Protection Commission (FCCPC) in ensuring a fair, competitive, and well-regulated marketplace. Their efforts must remain focused on market stability, consumer protection, and building public confidence in the reform process,” the communique stated.