FG: How Dangote Refinery Will Save Nigeria, West Africa, Africa

…Govt pledges full support as plant targets 1.4 million BPD

By Jeremy Fregene

The Federal Government has pledged its full backing for the Dangote Refinery to achieve its expanded target of refining 1.4 million barrels of crude oil per day, describing the project as a game-changer for Nigeria, West Africa, and the entire continent.

Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, made the commitment yesterday at the opening of the 19th Africa Downstream Energy Week in Abuja. The event, themed “Energy Sustainability: Growth Beyond Boundaries and Competition,” brought together key stakeholders across Africa’s energy value chain.

Lokpobiri described the refinery’s expansion plan as a milestone for Africa’s energy independence and a validation of President Bola Tinubu’s reforms in the oil and gas sector. “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,” he said.

The minister explained that President Tinubu’s removal of the fuel subsidy and liberalisation of the downstream petroleum sector were critical to attracting private investment. “With subsidies, the private sector could not grow,” he said. “Now we have healthy competition, price stability, and improved product availability. The downstream can only thrive when private capital is free to invest.”

Lokpobiri noted that without the reforms, Nigeria’s energy sector would have collapsed under financial pressure. He reaffirmed the government’s resolve to deepen investment in oil and gas even as the world transitions toward cleaner energy sources. “The world has realised that energy transition cannot happen in a vacuum. Oil and gas remain essential to the global economy,” he said.

Citing recent United Nations data, Lokpobiri said the world must invest $540 billion annually in oil and gas infrastructure to meet energy demand and sustain economic growth. He stressed that for Africa, home to over 1.4 billion people, expanding exploration, production, and refining capacity is crucial for self-sufficiency and economic stability.

“Africa cannot afford to abandon hydrocarbons,” he declared. “We must pursue a balanced energy mix that guarantees security for our people while funding our transition goals.”

The minister commended President Tinubu’s “bold and courageous leadership,” which he said had repositioned the downstream sector for long-term sustainability. “Subsidy was not sustainable; it discouraged private investment and burdened government finances. What we are seeing today is a more competitive environment that promotes efficiency and private participation,” he added.

Also speaking at the event, Mr. Adetunji Oyebanji, Chairman of the Advisory Board of OTL Africa Downstream Energy Week and former Chairman of the Major Energy Marketers Association of Nigeria (MEMAN), called for consistency in policy and innovation to drive Africa’s energy transformation.

Oyebanji said global disruptions and the energy transition were forcing Africa to rethink its role from a supplier of raw hydrocarbons to a hub for innovation and value addition. “Africa must position itself not just as a source of energy, but as a source of innovation. Our growth must be sustainable, inclusive, and borderless,” he said.

He emphasised that Nigeria remains central to the continent’s energy future, noting that deregulation, gas commercialisation, and infrastructure expansion have laid a foundation for growth. “The downstream market is evolving amid both turbulence and transformation. Success will depend on our ability to combine innovation with policy stability,” he added.