Akwa Ibom refinery: What you need to know about Nigeria’s biggest oil project

If you’re curious about Nigeria’s energy scene, the Akwa Ibom refinery is the headline. It’s the country’s first large‑scale refinery built from scratch in decades, and it promises to change how gasoline, diesel and jet fuel are made locally. Below we break down where the project stands, when it might finish, and why it matters to everyday Nigerians.

Project background and current status

The Akwa Ibom refinery sits on the coast of Akwa Ibom State, close to the deep‑water port at Uquo. Construction kicked off in 2022 with a €5 billion budget funded by the federal government and a consortium of Nigerian banks. As of mid‑2025, the main civil works are done, and the plant is moving through mechanical‑completion tests. The first crude distillation unit should fire up by the end of 2025, followed by the catalytic cracking and reforming units in early 2026. Officials say the project is about 80 % on schedule, but occasional delays in equipment delivery could push the final hand‑over a few months.

Economic impact and job creation

One of the biggest selling points is the jobs it will generate. During construction, the site employed roughly 12 000 workers, most from local communities. Once fully operational, the refinery will need about 2 000 staff for day‑to‑day operations, plus a supply chain of contractors, transport firms and service providers. The boost in local purchasing power is expected to raise incomes in the surrounding towns, while the increased domestic fuel supply should shave off the cost of imported gasoline, saving the country billions each year.

Beyond jobs, the refinery is set to lift Nigeria’s refining capacity from around 400 000 barrels per day to over 650 000 barrels per day. That jump means less reliance on imported fuels, which has been a chronic drain on foreign exchange. The government also plans to tie the refinery to a new petrochemical park, opening doors for downstream industries like plastics and fertilizer production. In the long run, this could create a whole ecosystem of factories, spurring industrial growth in the Niger Delta region.

Challenges remain, though. Power supply is a common hurdle for large plants, and the refinery will need a reliable grid or dedicated generators to run 24/7. Environmental groups have raised concerns about emissions and potential water contamination, prompting the project team to install modern scrubbers and waste‑water treatment plants. Community relations are also key; the developers have pledged scholarships, health clinics and road upgrades as part of their corporate‑social‑responsibility package.

In short, the Akwa Ibom refinery is more than a concrete structure – it’s a catalyst for economic change. If the remaining milestones are hit on time, Nigerians could see lower fuel prices, new jobs and a stronger industrial base within the next couple of years. Keep an eye on official updates, because the refinery’s progress will shape the country’s energy and economic outlook for the foreseeable future.