The Federal Government has declared its full support for Dangote Refinery’s plan to boost production capacity to 1.4 million barrels per day (bpd), describing the project as a “game-changer” for Nigeria, West Africa, and the entire continent.
Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, made this known on Monday in Lagos while speaking at the opening of the 19th Africa Downstream Energy Week, themed “Energy Sustainability: Growth Beyond Boundaries and Competition.”
Lokpobiri said the government would work closely with the Dangote Group to ensure the success of the refinery’s expansion, which, when completed, will make it one of the largest refining facilities in the world.
“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,” he said.
A major milestone for Africa’s energy independence
The minister described the refinery’s expansion plan as a major milestone for Africa’s energy independence and a validation of the government’s policy direction.
Lokpobiri explained that the removal of fuel subsidy and the liberalisation of the downstream petroleum sector were key policy decisions aimed at creating a viable environment for private sector investment.
“The main reason President Bola 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,” the Minister said.
He noted that while some Nigerians initially misunderstood the policy, it has now led to a more stable and competitive petroleum products 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.
Lokpobiri stressed that if the government had not removed subsidies, Nigeria’s energy sector would be facing severe difficulties today.
FG restates commitment to deepen oil and gas investment
The minister reaffirmed the Federal Government’s commitment to deepening investment in the oil and gas sector, saying the global conversation on energy transition is gradually shifting to a more balanced perspective that recognises the continued importance of hydrocarbons.
The Minister said, “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.”
Citing recent United Nations reports, Lokpobiri said the world needs to invest about $540 billion annually in oil and gas recovery and related infrastructure to meet growing energy demand and ensure global energy security.
He added that discussions on climate change and net-zero emissions remain relevant, but the realities of global population growth and consumption patterns make it clear that hydrocarbons would continue to play a central role for decades to come.
“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 crucial not only for self-sufficiency but also for the continent’s economic stability,” he said.
Lokpobiri noted that Nigeria’s downstream sector is gradually stabilising following the removal of subsidies, with improved product availability and increased investor confidence.
The minister said, “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.”
Back story
On Sunday, Nairametrics reported that the Dangote Refinery announced plans to expand its production capacity from 650,000 barrels per day to 1.4 million barrels per day, a move that will make it the largest refinery in the world once completed, surpassing India’s Jamnagar Refinery.
Speaking at a press conference in Lagos, the President of the Dangote Group, Aliko Dangote, said the expansion demonstrates the company’s confidence in Nigeria’s economic future.
