- Nigeria aims to lead Africa’s fuel refining and distribution network.
- Lokpobiri calls for more substantial investment across the oil and gas value chain.
Nigeria’s plan to become Africa’s refinery hub is progressing rapidly as the nation seeks to meet growing regional fuel needs. Africa’s population nears 1.5 billion, and fuel imports exceed 120 million litres daily. Therefore, Nigeria aims to capture this vast market through innovation and strategic investment.
Speaking at the 19th OTL Africa Downstream Energy Week in Lagos, Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, presented Nigeria’s roadmap for regional energy leadership. Representing President Bola Tinubu, he stated that Nigeria’s plan to become Africa’s refinery hub would retain capital within the continent while boosting local refining capacity.
Lokpobiri warned that stopping hydrocarbon development would damage Africa’s economic progress. He added that weak distribution systems and poor refining capacity limit growth. Hence, Nigeria plans to launch the West African Petroleum Market to serve as the region’s refinery and distribution centre.
Furthermore, he cited data from the International Energy Agency (IEA), which shows the world must invest about $540 billion yearly in upstream oil and gas. Without this, a global energy crisis could emerge by 2050. Consequently, he urged African nations to collaborate and invest in upstream, midstream, and downstream sectors.
Lokpobiri also noted that the energy transition must be practical and inclusive. While renewable energy remains vital, he explained that oil and gas profits should fund cleaner energy expansion. The Dangote Refinery’s daily upgrade to 1.4 million barrels supports Nigeria’s regional ambitions and aligns with national deregulation reforms.
Moreover, removing fuel subsidies has created room for private investment and local capacity growth. Lokpobiri said the funds previously used for subsidies now strengthen infrastructure and promote development.
In conclusion, Lokpobiri urged African governments not to rely on unfulfilled Western climate finance pledges. Instead, he encouraged domestic collaboration to secure the continent’s energy future. Nigeria’s refinery expansion strategy shows its resolve to lead Africa’s energy growth, improve regional security, and drive sustainable industrialisation.