Copyright bizwatchnigeria
The Federal Government has pledged full support for the Dangote Refinery’s plan to scale up its production capacity to 1.4 million barrels per day (bpd), describing the project as a transformative milestone for Nigeria, West Africa, and the African continent at large. Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, made the announcement on Monday in Lagos during the opening of the 19th Africa Downstream Energy Week, themed “Energy Sustainability: Growth Beyond Boundaries and Competition.” Lokpobiri commended the Dangote Group for its bold expansion initiative, assuring that the government would collaborate closely with the company to ensure the successful completion of the project, which, upon realisation, would position the refinery among the world’s largest. “I received the good news that the Dangote Refinery is expanding its capacity to 1.4 million barrels per day. That will not only save Nigeria or West Africa; it will save Africa and make an impact globally. The Federal Government will support him all the way to accomplishing that goal,” the minister stated. A Major Step Toward Africa’s Energy Independence Lokpobiri described the refinery’s expansion as a major leap toward achieving Africa’s energy independence and a validation of the government’s policy direction in the petroleum sector. He noted that the removal of fuel subsidies and the liberalisation of the downstream sector were deliberate policy measures by President Bola Ahmed Tinubu’s administration to encourage private investment and ensure a more competitive market. “The main reason the President announced the removal of fuel subsidy on his first day in office was because, 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,” Lokpobiri explained. According to him, while the policy was initially misunderstood by some Nigerians, it has begun to yield tangible results, including improved product availability, market stability, and healthy competition among operators. “With deregulation and liberalisation, there is now healthy competition. Prices are more stable, availability has improved, and products are more accessible and affordable despite challenges,” he said. FG Reaffirms Commitment to Energy Sector Investment The minister further reaffirmed the government’s commitment to deepening investments in the oil and gas industry, noting that the global energy transition debate has evolved toward a more balanced approach that acknowledges the continuing relevance 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,” he said. Citing United Nations data, Lokpobiri stated that the world requires about $540 billion in annual investments in oil and gas exploration and infrastructure to meet rising energy demands and sustain global energy security. He stressed that while climate change and net-zero emission goals remain critical, Africa must balance these with its developmental needs and population growth. “Africa, with a population exceeding 1.4 billion people, cannot afford to ignore investment in oil and gas. Expanding exploration, production, and refining capacity is vital for self-sufficiency and the continent’s economic stability,” he added. Lokpobiri noted that Nigeria’s downstream petroleum sector is witnessing gradual stability following the removal of subsidies, with improved supply, enhanced competition, and renewed investor confidence. “Subsidy was not sustainable; it discouraged private investment and placed a heavy burden on government finances. What we are seeing today is a more competitive environment that promotes efficiency and private participation,” the minister concluded.
