The Federal Government has pledged its full support to the Dangote Refinery as it moves to expand its refining capacity to 1.4 million barrels per day, describing the project as a game-changer for Africa’s energy independence and global relevance.
Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, made this known on Monday in Lagos during his welcome address at the 19th Africa Downstream Energy Week, themed “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,” Lokpobiri stated.
He described the refinery’s expansion plan as a milestone that validates President Bola Ahmed Tinubu’s policy direction toward energy self-sufficiency.
According to the minister, the removal of fuel subsidy and the liberalisation of the downstream petroleum sector were deliberate policy choices aimed at attracting private investment and stimulating growth.
“The main reason President Tinubu announced the removal of fuel subsidy on his first day in office was that, 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,” he explained.
Lokpobiri noted that while the decision initially faced criticism, deregulation had now created a healthier, more competitive 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.
The minister stressed that keeping the subsidy regime would have crippled the energy sector, adding that its removal has restored investor confidence and fiscal discipline.
He reaffirmed government’s commitment to deepening investment in oil and gas, noting that global energy transition conversations are increasingly recognising 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,” Lokpobiri said.