The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, says the Federal Government is committed to ensuring that every barrel of crude oil produced in Nigeria contributes real value to the nation’s economy both at home and abroad.
Speaking at the 2025 CORAN Summit held in Lagos on Tuesday, the minister said the government was prioritising indigenous refining capacity as part of its drive toward energy self-sufficiency and sustainable economic growth.
Represented by his Technical Adviser, Ndah Adaba, Lokpobiri emphasised that improving local refining and ensuring energy security were central to Nigeria’s long-term development goals.
The summit, themed “Refinery Key to Energy Security in Africa,” brought together engineers, investors, policymakers, and energy professionals from across the continent to discuss the continent’s path toward refining independence.
Lokpobiri said the Federal Government, through the Domestic Crude Oil Supply Obligation (DSCO), was ensuring that all licensed local refineries had consistent access to feedstock for operations.
“Beyond licensing, the government is facilitating crude oil supply to domestic refiners through the effective implementation of the Domestic Crude Oil Supply Obligation,” he said.
He noted that the ‘Naira for Crude’ initiative, introduced to stabilise the market, would continue to play a vital role in reducing fuel production costs, minimising exposure to exchange rate volatility, and supporting indigenous refinery operations.
“No nation can claim energy independence without the ability to refine its own crude,” the minister stated.
Highlighting recent reforms, Lokpobiri said the government had simplified the refinery licensing process through the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
According to him, the process, which covers the Licence to Establish, Licence to Construct, and Licence to Operate, has been streamlined to eliminate bureaucratic bottlenecks and encourage credible investors.
“This administration supports genuine investors who can deliver results, not those who thrive on red tape,” Lokpobiri said.
‘Indigenous Refineries Are Success Stories’
Lokpobiri listed the Dangote Refinery & Petrochemical Complex, Waltersmith Petroman Refinery, and Aradel Holdings as examples of indigenous success stories driving Nigeria’s refining renaissance.
“Today, we have seen indigenous success stories such as Dangote Refinery, Waltersmith Petroman Refinery, and Aradel Holdings, among others. These demonstrate that Nigerians possess both the capacity and the will to refine our crude locally,” he said.
According to him, such projects “symbolise confidence in government policy direction” and align with President Bola Tinubu’s Renewed Hope Agenda, which identifies domestic refining as a key driver of job creation, energy independence, and industrial revival.
Nigeria Launches West African Fuel Market
In a move to strengthen regional cooperation, the minister revealed that the Federal Government had launched the West African Fuel Reference Market, an initiative aimed at positioning Nigeria as the refining and petroleum distribution hub for West Africa.
“With increased domestic refining capacity, Nigeria will not only meet its internal demands but also become a reliable supplier to neighbouring countries,” Lokpobiri explained.
He said the initiative aligns with the African Union’s energy integration goals and the African Continental Free Trade Area (AfCFTA) framework, which seeks to deepen intra-African trade and reduce dependency on foreign refineries.
Looking ahead, Lokpobiri said the Federal Government would prioritise feedstock security for all licensed refiners while expanding fiscal incentives to attract both local and foreign investments.
He added that collaboration among the Ministry of Petroleum Resources, NMDPRA, NUPRC, and security agencies was being strengthened to combat crude oil theft, curb pipeline vandalism, and foster peaceful relations with host communities.
“The path to Africa’s energy security runs through the gates of our refineries and the institutions that support them,” Lokpobiri said.
He urged African nations to deepen cooperation in product exchange, logistics, and shared energy infrastructure, describing such partnerships as vital to the continent’s quest for self-reliance.
Meanwhile, Nigeria’s importation of Premium Motor Spirit (petrol) has dropped to its lowest level in eight years, as government reforms and rising local refining capacity reshape the downstream market.
A new report by Argus Media showed that Nigeria received 116,000 barrels per day (18.44 million litres) of petrol shipments in September, down from 154,000 barrels per day (24.49 million litres) in August, the lowest level since 2017, according to Kpler data.
The report attributed the decline to policy reforms, improved local output, and ongoing maintenance activities at the 650,000 barrels-per-day Dangote Refinery, which has temporarily slowed operations.
Despite a recent industrial dispute between the refinery’s management and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), analysts say the sustained drop in imports signals growing confidence in domestic refining and a gradual shift toward energy independence.
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