By Erewunmi Peace

Nigeria’s energy sector is set for a major transformation as Gasoline Associates International Limited (GAIL) progresses with the development of a large-scale petroleum refinery and petrochemical complex in Ipokia, Ogun State. The project, initially licensed by the Federal Government, is designed to reach a capacity of 450,000 barrels per day (BPD) upon completion.

The refinery, currently under construction on a 1,000-hectare coastal site near the Yewa River, is starting with an initial production capacity of 100,000 BPD, with phased upgrades that will see it reach full capacity in the coming years.

Boost to Local Refining and Economy

With Nigeria heavily dependent on imported petroleum products, the GAIL refinery aims to boost domestic refining, reduce import bills, and enhance the country’s energy security.

According to GAIL’s Chief Executive Officer, Dr. Lukman Akande Bolaji, the plant will process a range of refined products including:

Premium Motor Spirit (PMS)

Automotive Gas Oil (diesel)

Jet A1 (aviation fuel)

Liquefied Petroleum Gas (LPG)

Petrochemicals for industrial use

“Our vision is to support the federal government’s drive for energy independence and job creation,” said Dr. Bolaji. “This plant is a game-changer, not just for Ogun State, but for Nigeria and West Africa.”

Strategic Location

The refinery’s location in Ipokia, close to the Republic of Benin border, is expected to enhance cross-border trade and provide easy export routes via the Atlantic coastline. The plant’s presence is also set to attract investments, improve local infrastructure, and stimulate industrial development in southwestern Nigeria.

Timeline and Partnerships

Construction is already underway, with modular units and equipment being assembled on-site. The company has entered into partnerships with international engineering firms and is sourcing technology from globally recognized refinery equipment manufacturers.

The full 450,000 BPD target is expected to be achieved in phases over the next few years, with the initial 100,000 BPD phase projected to be operational within 12–18 months.