The Federal Government has said the Dangote Petroleum Refinery alone cannot meet Africa’s growing demand for refined petroleum products, urging local and international investors to inject more capital into Nigeria’s refining, midstream and downstream sectors.
The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, said Nigeria must build on the success of the Dangote refinery and attract additional investments if it wants to move beyond supplying the West African market and become a major refined petroleum products hub for the continent.
Lokpobiri spoke on Tuesday at the second West Africa Refined Fuel Market Conference in Abuja, where regulators, refiners, traders, financiers and other energy stakeholders gathered to advance plans for a transparent regional pricing system for refined petroleum products.
The conference was jointly hosted by the Nigerian Midstream and Downstream Petroleum Regulatory Authority, S&P Global Commodity Insights and the West Africa Regulators Forum.
It was themed, “Funding West Africa Infrastructure & Distribution to Create a Transparent Market for Regional Price Benchmarks.”
The minister described the conference as a turning point in Africa’s pursuit of greater energy sovereignty, saying Nigeria must build on the progress recorded in its refining and midstream sectors.
According to Lokpobiri, the Dangote refinery has demonstrated the potential of private-sector investment in Nigeria’s petroleum industry. However, he stressed that even an expansion of the facility to 1.4 million barrels per day would not be enough to satisfy the needs of the African continent.
“The Dangote refinery is not enough,” Lokpobiri said, while calling for more refineries and infrastructure to support the continent’s growing fuel demand.
He urged investors with available capital to take advantage of Nigeria’s expanding energy market, stressing that the country was strategically positioned to serve both regional and international markets.
The minister also highlighted Nigeria’s geographical advantage, noting that the country was not directly dependent on the Strait of Hormuz for its crude oil and petroleum product supply routes.
“It’s the best time for us to attract as many investors as we can. Not just into the upstream, but into the midstream, and then the downstream,” he said.
Lokpobiri said Nigeria must move away from the traditional model of exporting raw commodities and importing processed products, arguing that the country’s growing refining capacity presented an opportunity to change the pattern.
He urged stakeholders to replicate the success of the Dangote refinery by investing in domestic processing, stressing that Nigeria should aim beyond capturing the West African market and position itself to supply refined products across Africa.
“Africa has a huge market,” the minister said, adding that Nigeria, as the continent’s leading oil and gas producer, should position itself as a true leader in the African petroleum market.
According to him, achieving this ambition will require a sustainable pricing mechanism capable of attracting investment while allowing market forces to determine petroleum product prices.
He said the government would continue to encourage private capital into refining, transportation, storage and other infrastructure needed to establish Nigeria as a regional energy hub.
Lokpobiri also pointed to growing international demand for products from the Dangote refinery as evidence of the commercial potential of Nigeria’s refining industry.
He recalled that increased European demand for Dangote refinery’s jet fuel had affected local market conditions, demonstrating the need to expand domestic refining capacity and develop pricing structures that can respond effectively to market forces.
The minister assured stakeholders that the Federal Government remained committed to supporting the development of a regional petroleum market and the institutions required to make it work.
He said the objective was not only to increase Nigeria’s refining output but also to develop the infrastructure, regulatory framework and pricing system required to transform the country into a major African energy hub.
Also speaking, the Special Adviser to the President on Energy, Olu Verheijen, said West Africa was not lacking in energy resources or demand but was constrained by fragmented markets and inadequate infrastructure.
Verheijen said Nigeria’s expanding refining capacity and reduced dependence on imported petrol had created an opportunity for the country to serve as an anchor for a more integrated regional petroleum market.
“Refining capacity alone, as big as ours is, does not create energy security,” she said.
She stressed that refined petroleum products must be financed, stored, transported and distributed efficiently before they could deliver their full economic value.
Verheijen called for greater investment in pipelines, ports, storage facilities, coastal vessels, trucking networks and trading platforms. She also advocated common product standards and stronger cooperation among regional regulators.
Meanwhile, the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Oritsemeyiwa Eyesan, said developments across Nigeria’s oil and gas value chain had created an opportunity to complete the integration of West Africa’s petroleum market.
Eyesan identified rising refining capacity, improved gas supply and increased crude oil production as developments that could support the regional initiative.
She said West African countries must move away from operating as isolated national markets and develop integrated systems that allow petroleum products to move efficiently across borders.
“The West African market must be integrated. We can no longer afford to operate in silos,” she said.
Eyesan called for integrated regulatory systems and infrastructure capable of connecting producers, refiners, traders and consumers across the sub-region.
The Federal Government’s renewed push for investment underscores its ambition to leverage Nigeria’s expanding refining capacity and strategic location to become a major supplier of refined petroleum products across Africa.
