Nigeria’s Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, has underscored the pivotal role of local refineries in bolstering the nation’s downstream petroleum sector. He emphasized that enhancing domestic refining capacity is a key priority for the Federal Government, as it holds the potential to significantly reduce Nigeria’s dependence on imported fuel and subsequently stabilize and lower the prices of petroleum products for consumers. This focus on local refining forms a core component of the administration’s broader strategy to optimize the entire petroleum value chain and maximize its economic benefits for the country. Lokpobiri articulated this vision during a meeting with the Chief Executive Officer of OTL Downstream Development in Africa Ltd/Gte, Mrs. Joyce Akabogu, and her team, who visited the ministry to discuss the upcoming OTL Africa Downstream Energy Week.
Lokpobiri highlighted the often-overlooked significance of the downstream sector, emphasizing its potential to generate substantial revenue for the national economy. He pointed out that while the sale of a barrel of crude oil yields approximately $70, the income generated from refined petroleum products derived from that same barrel could be threefold higher. This significant value proposition underscores the importance of developing a robust downstream sector capable of maximizing returns from Nigeria’s crude oil resources. To demonstrate the government’s commitment, Lokpobiri referenced the recent issuance of licenses for the development of new refineries and the ongoing support provided to existing local refining operations. These actions are aimed at bolstering in-country refining capacity and transforming Nigeria from a net importer of refined petroleum products to a net exporter.
The removal of fuel subsidies, a policy decision that has garnered both support and criticism, was framed by the minister as a strategic move to strengthen Nigeria’s refining capabilities. By removing subsidies, the government aims to create a more level playing field for local refiners, encouraging investment and growth within the sector. This, in turn, is expected to lead to increased domestic production of refined petroleum products, ultimately reducing the country’s reliance on imported fuel and contributing to a more competitive market. The anticipated outcome of this strategy is a decrease in petroleum product prices, benefiting consumers and promoting economic stability.
Mrs. Akabogu, CEO of OTL Downstream Development in Africa, explained that the purpose of her visit was to engage the Ministry of Petroleum Resources in the preparations for the upcoming OTL Africa Downstream Energy Week. This event is designed to foster collaboration and growth within the downstream energy value chain across Africa, providing a platform for stakeholders to connect, share knowledge, and explore opportunities. Akabogu emphasized the importance of the event in promoting sustainable development and investment within the downstream sector, highlighting its potential to drive economic growth and create jobs across the continent.
Minister Lokpobiri expressed the ministry’s full support for the OTL Africa Downstream Energy Week, lauding it as a focused initiative specifically dedicated to the downstream sector. He contrasted this with other, broader initiatives that address the entire energy value chain, emphasizing the unique value of an event solely dedicated to downstream operations. He affirmed that Nigeria is an ideal host for this event, given its prominent position in the global energy landscape and its ongoing efforts to develop its downstream sector and enhance overall refining capacity Furthermore, he expressed confidence that the event will provide a much-needed platform for investors and other industry players to engage with relevant stakeholders from the public and private sectors across the African downstream energy value chain.
Lokpobiri commended the OTL Africa Downstream Energy Week secretariat for their proactive approach to planning the event months in advance. He viewed this as a positive indicator of the event’s potential to foster industry growth and sustainability. The minister concluded by confirming his participation in the 2025 event, along with representatives from various agencies under the Ministry of Petroleum Resources. This commitment reflects the ministry’s dedication to supporting and promoting the development of a robust and thriving downstream sector in Nigeria and across Africa. The OTL Africa Downstream Energy Week is seen as a crucial platform for advancing this agenda and fostering collaboration among stakeholders within the industry.
