Nigeria is placing increasing emphasis on the value of in-country petroleum products refining, with a strategic focus on boosting the downstream sector to maximize economic benefits from crude oil.
Senator Heineken Lokpobiri, Minister of State for Petroleum Resources (Oil), has expressed the government’s unwavering commitment to strengthening the downstream oil sector and optimizing the country’s refining capacity.
The Minister made these remarks during a courtesy visit by Mrs. Joyce Akabogu, Chief Executive Officer (CEO) of OTL Downstream Development in Africa Ltd./Gte., who led her team to the Ministry.
Lokpobiri outlined the critical importance of the downstream sector, which, despite often being overlooked by some operators, holds substantial value for Nigeria’s economy.
“While sales from a barrel of crude oil are estimated at around $70, income from derivatives of crude oil refining could be three times more,
” Lokpobiri stated. He emphasized that the government is focused on enhancing in-country refining capacity, with recent actions including the issuance of licenses for the development of additional refineries and continuous support for local refining industries.
The Minister reiterated the belief of the Bola Ahmed Tinubu administration that strengthening local refining capacities is essential for reducing Nigeria’s dependence on imported refined petroleum products. This, he explained, would ensure a more competitive domestic market, ultimately benefiting Nigerian consumers through reduced prices of petroleum products.
Lokpobiri also clarified that the removal of subsidies was a deliberate step to support Nigeria’s refining capabilities, signaling the country’s ambition to become a net exporter of petroleum products in the future.
He highlighted that boosting local refining will not only create more jobs but also lead to sustainable economic growth in the petroleum sector.
During the meeting, Mrs. Akabogu shared that the visit was aimed at engaging the Ministry of Petroleum Resources in preparation for the upcoming OTL Africa Downstream Energy Week.
The event is designed to foster collaboration and partnerships across the African downstream energy sector, providing a platform for growth and innovation.
In response, Lokpobiri expressed the Ministry’s full support for the OTL Africa Downstream Energy Week, noting that it is a focused event that directly addresses the needs of the downstream sector, in contrast to broader industry conferences.
He emphasized that Nigeria, with its pivotal role in the global energy market, is well-positioned to host the event.
The Minister commended the OTL Africa Downstream Energy Week secretariat for their proactive approach in preparing months ahead of the event, describing it as a positive sign of the event’s potential to facilitate industry growth and sustainability. He confirmed his participation in the 2025 event, alongside agencies under the Ministry.
By prioritizing downstream development, the Nigerian government aims to unlock the full economic potential of the country’s petroleum resources, ensuring that more value is derived from the processing and refining of crude oil, while also building a more resilient energy sector for the future.
