Nigeria to begin exporting urea in 2028 — NMDPRA

The Nigerian Midstream and Downstream Petroleum Regulatory Authority has said Nigeria will begin exporting urea in 2028 as the country positions itself as a major hub for value-added oil and gas products.

The authority also disclosed that Nigeria would soon commence large-scale fertiliser exports.

The Chief Executive of NMDPRA, Saidu Mohammed, made this known while fielding questions from journalists during a tour of facilities at Indorama Eleme Fertiliser and Chemicals Limited in Eleme Local Government Area of Rivers State on Wednesday.

The visit was part of his three-day tour of selected midstream and downstream oil and gas facilities in Rivers State.

According to Mohammed, Nigeria is striving to become a major hub for value-added products in the oil and gas industry, noting that the midstream sector is critical and requires significant investment to unlock its full potential.

He said the country had no reason to continue importing value-added products such as urea and fertilisers, particularly given the scale of private-sector investments currently being made in the sector.

“The midstream segment of the oil and gas business is a tremendous one that requires massive investment. We need between $30bn and $50bn today if we are to put Nigeria on the right footing as a hub not only for oil and gas but also for secondary derivatives,” he said.

Value-added products like fertilisers and urea are things Nigeria has no business importing. With the expansion going on at Indorama and several other facilities, including Dangote Fertiliser, I am confident that within the next 24 months, Nigeria will join the league of urea-exporting countries, which is where we should be.

“And this is not just about being an energy hub, but also a hub for secondary derivatives of oil and gas,” Mohammed added.

The NMDPRA boss commended Indorama for its level of investment, describing it as a clear demonstration of the kind of development Nigeria needs in the midstream sector.

“It is a manifestation of what Nigeria needs. We require more midstream investments — fertiliser plants and other value-addition initiatives on our hydrocarbon resources — to propel the nation forward,” he said.

Explaining the choice of Rivers State for the facility tour, Mohammed said the state was selected because of its strategic importance to Nigeria’s oil and gas industry, hosting key national assets including refineries, processing plants and manufacturing facilities.

“The midstream and downstream segments are well represented in Rivers State. Whatever aspect of gas processing, manufacturing or refining we want to see, we can find it here.

“We selected a few facilities to give us an overview of activities in the sector. That is the essence of this visit,” he said.

He added that the authority’s role was to create an enabling environment for operators to thrive while attracting additional investments into the sector.

“The authority is here to facilitate, provide support, and create the right environment for operators to expand investments, while we also attract more investors into the sector,” Mohammed said.

Also speaking, the Chief Executive Officer of Indorama Eleme Fertiliser and Chemicals Limited, Mr Munish Jindal, said the visit was important as it allowed the regulator to better appreciate operations, achievements and challenges in the midstream sector.

Jindal, who noted that Indorama had been operating in Nigeria for over 20 years, said the NMDPRA chief had played a role in the establishment of the company.

“We thank the authorities for the understanding they have developed over the years for the midstream industry. In the early days, it was challenging to explain our operational realities and needs, but that understanding has significantly improved over the past 18 years,” he said.

While expressing appreciation for the current regulatory framework, Jindal said some existing provisions were no longer relevant to midstream manufacturing companies and had requested exemptions.

“There are one or two issues that may benefit the oil and gas industry generally, but are no longer relevant to midstream manufacturers like us. We have requested that the authority look into these areas and consider exemptions where appropriate,” he said

PUNCH Online reports that the tour of midstream and downstream facilities in Rivers State by the NMDPRA chief and his team ends on Friday, with Mohammed indicating that further visits to facilities in other states would follow, noting that three days were insufficient to cover all relevant areas.