Nigeria’s Federal Government has assured managers of Africa’s largest petroleum refinery, the Dangote Refinery, of its full commitment to supporting the facility’s plan to expand its capacity from 630,000 barrels per day to 1.4 million barrels per day, making it the largest refinery in the world.
Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, conveyed the government’s position on Monday in Lagos while delivering a keynote address at the 19th Africa Downstream Energy Week.
The theme of this year’s event is “Energy Sustainability: Growth Beyond Boundaries and Competition.”
“I received the good news that the Dangote Refinery is expanding its capacity to 1.4 million barrels per day. That will not just save Nigeria or West Africa — it will save Africa and, indeed, make an impact globally. The Federal Government will support him all the way to accomplishing that goal,” the minister said.
Mr. Lokpobiri described the refinery’s expansion plan as a major milestone for Africa’s energy independence and a validation of the government’s policy direction under President Bola Ahmed Tinubu.
He explained that the removal of fuel subsidy and the liberalisation of the downstream petroleum sector were key policy decisions aimed at creating a viable environment for private sector investment.
“The main reason President Tinubu announced the removal of fuel subsidy on his first day in office was because, with subsidies, the private sector could not grow. The downstream can only thrive when the right business environment allows private capital to flow in, invest, and maximise opportunities.”
The minister noted that while some Nigerians initially misunderstood the policy, it has now led to a more stable and competitive petroleum products market.
“With deregulation and liberalisation, there is now healthy competition. Prices are stable, availability has improved, and products are more accessible and affordable despite challenges,” he said.
Mr. Lokpobiri stressed that if the government had not removed subsidies, Nigeria’s energy sector would be facing severe difficulties today.
He reaffirmed the Federal Government’s commitment to deepening investment in the oil and gas sector, noting that the global conversation on energy transition is shifting toward a more balanced perspective that recognises the continued importance of hydrocarbons.
“The world has realised that energy transition cannot happen in a vacuum. Even as we pursue cleaner sources, the global economy still depends on oil and gas. Without substantial investment in these resources, there will be no financial capacity to fund the energy mix we all desire.”
Citing recent United Nations reports, the minister said the world needs to invest about $540 billion annually in oil and gas recovery and related infrastructure to meet growing energy demand and ensure global energy security.
He added that while discussions on climate change and net-zero emissions remain important, the realities of global population growth and consumption patterns make it clear that hydrocarbons will continue to play a central role for decades to come.
“Africa, with a population exceeding 1.4 billion people, cannot afford to ignore investment in oil and gas. Expanding exploration, production, and refining capacity is crucial not only for self-sufficiency but also for the continent’s economic stability,” he said.
Mr. Lokpobiri noted that Nigeria’s downstream sector is gradually stabilising following subsidy removal, with improved product availability and increased investor confidence.
Meanwhile, Adetunji Oyebanji, Chairman of the Advisory Board of OTL Africa Downstream Energy Week, called for renewed collaboration, policy consistency, and innovation to drive Africa’s energy sustainability and competitiveness in a rapidly changing global landscape.
Mr. Oyebanji said the conference underscored the need for Africa and Nigeria to look beyond conventional limits and create an energy future anchored on integration, inclusiveness, and responsible growth.
He described the OTL Africa Downstream Energy Week as a bridge between policy and practice, bringing together regulators, operators, investors, and innovators to shape the future of Africa’s downstream energy industry.
“Energy sustainability is not merely about preserving resources; it is about ensuring that our growth today does not compromise the prosperity of tomorrow. We must build an industry that is competitive, responsible, and adaptable to a rapidly changing global environment,” he explained.
Mr. Oyebanji, a former Chairman of the Major Energy Marketers Association of Nigeria (MEMAN), noted that the global energy sector is undergoing major shifts, driven by geopolitical tensions, supply uncertainties, and the accelerating march toward energy transition.
He explained that conflicts in Eastern Europe and the Middle East have kept oil markets tight, while the global push toward cleaner fuels and renewables is reshaping investment priorities.
He stressed that Africa — richly endowed with natural resources and human capital — must move beyond being a supplier of raw hydrocarbons to becoming a hub for innovation, efficiency, and value addition.
“Africa must position itself not just as a source of energy, but as a source of innovation.
Our growth must be sustainable, inclusive, and borderless,” he added.
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