The Minister of State Petroleum Resources (Oil), Heineken Lokpobiri, says local refineries will help in reducing the prices of refined petroleum products as well as the country’s dependence on imported fuel.
Lokpobiri highlighted the importance of the downstream value chain of the petroleum industry to Nigeria and the commitment of the Federal Government to optimising the country’s refining capacity.
He made these comments while receiving the Chief Executive Officer of OTL Downstream Development in Africa Ltd/Gte, Mrs Joyce Akabogu, who led her team on a courtesy visit to the petroleum ministry.
According to a statement by OTL, Lokpobiri observed that even though many operators tend to overlook its importance, the downstream sector is of critical value to the overall petroleum value chain, given its significant revenue potential and value to the national economy.
He stated that “while the sale from a barrel of crude oil is estimated at around $70, income accruable from derivatives of crude oil refining could be three times more.”
He spoke further, “Realising its value to the economy, the ministry is focused on enhancing in-country refining capacity, reflected in the recent issuance of licenses for the development of additional refineries and ongoing support for the local refining industry.”
The oil minister emphasised that President Bola Tinubu’s administration firmly believes that boosting local refining capacities “will help reduce the dependency on imported refined petroleum products and ensure a competitive market for the benefit of all Nigerians, leading to a continued decrease in the prices of petroleum products.”
He further clarified that the removal of subsidies was part of a strategic effort to strengthen Nigeria’s refining capabilities and ensure the country is ultimately a net exporter of petroleum products.
On her part, the CEO of OTL Downstream Development in Africa, Akabogu stated that the purpose of the visit was to engage the Ministry of Petroleum Resources towards the forthcoming OTL Africa Downstream Energy Week, noting that the event is aimed at fostering relationships within the downstream energy value chain and providing a pan-African platform for collaboration and growth.
Responding, Lokpobiri expressed the ministry’s support for the OTL Africa Downstream Energy Week, noting that it is a focused initiative dedicated to the downstream sector, unlike other initiatives that take a more holistic approach.
He affirmed that Nigeria is well-positioned to host the event, given its critical role in the global energy sector.
He commended the OTL Africa Downstream Energy Week secretariat for beginning preparations months ahead of the event, a proactive approach which, according to him, is an indicator of the event’s potential for facilitating industry growth and sustainability.
The minister confirmed his participation in the 2025 event, together with agencies under the ministry.