The proposed Ogun State Refinery was launched in partnership with the Indian state-owned company GAIL which is formerly known as Gas Authority of India Ltd. The refinery is cited as an emerging facility alongside the massive Dangote Petroleum Refinery, positioning Nigeria as a significant oil producer and exporter in Africa.
While details on its scale and specific timeline are less prominent compared to other major projects, its establishment suggests an active move by the Ogun State government to capitalize on Nigeria’s oil resources and potentially contribute to the nation’s goal of reducing reliance on imported petroleum products. Such refineries are crucial for job creation and boosting the local and national economy through domestic production and exports, signaling a period of significant growth and infrastructural development in the Nigerian energy sector.
Reported on August 6, 2025
Nigeria’s oil and gas landscape is expected to enter a bold new chapter. This follows the strategic move by Gasoline Associates International Limited (GAIL) as it unveiled its flagship refinery project in Ipokia, Ogun State. Led by Chairman and CEO Dr. Lukman Akande Bolaji, the Ogun State Refinery will become Nigeria’s second largest after the only Dangote Refinery.
The facility will commence its operations with a daily refining capacity of up to 100,000 barrels. Additionally, expansion plans already underway which are expected to scale up to 450,000 barrels per day. Once the refinery becomes fully operational, it will significantly cut Nigeria’s dependence on imported petroleum products by boosting the local supply of Premium Motor Spirit (PMS), Automotive Gas Oil (AGO), Liquefied Petroleum Gas (LPG), and Jet Fuel (ATK).
Also read: Nigeria’s Warri Refinery Operations Restart After $898 Million Revamp
Project Factsheet
Location: Ipokia Local Government Area, Ogun State, Nigeria, specifically on Tongeji Island.
Owner: Gasoline Associates International (GAIL)
Capacity: The initial phase is designed to process 100,000 barrels per day (bpd) of crude oil. There are plans to expand the capacity to 450,000 bpd.
More details:
- The project involves a vertically integrated technology covering refining, petrochemicals, and gas.
- The refinery will produce a range of products including Premium Motor Spirit (PMS), Automotive Gas Oil (AGO), Liquefied Petroleum Gas (LPG), Jet Fuel (ATK), and other petrochemical derivatives.
- It is being developed in a joint partnership with FL Engineering Consortium.
- The project is to be built on an 800-hectare piece of land.
Economic impact: The project aims to reduce Nigeria’s dependence on imported petroleum products, create jobs, and boost the state’s internally generated revenue.
Location
The refinery is strategically located near the Benin Republic border. Also, the refinery is expected to transform Ogun State into a key industrial and energy hub in West Africa. It will attract investment, generate thousands of jobs, and spur economic development in the region.
GAIL’s refinery project comes when Nigeria is making concerted efforts to revamp its downstream sector and strengthen energy security. Furthermore the refinery is also expected to include petrochemical facilities. This aligns with broader goals of industrial diversification and value-added production.
The Federal Government has already given GAIL the necessary licenses to construct and operate the facility. This shows strong regulatory support for the private-sector-led initiative.
Launching this mega-refinery shows that Nigeria is moving closer to self-sufficiency in fuel production. Therefore, this will reduce the country’s multi-billion-dollar annual fuel import bill. Additionally, the project will position itself as a regional powerhouse in energy and industrial growth.
This development marks a significant milestone not only for Ogun State but for Nigeria as a whole. Also, it paves the way for a more resilient, diversified, and self-reliant energy future.
Also read: Nigeria’s Abia Modular Refinery to begin full construction in May
