OTL: $450b needed globally to guarantee stable energy supply

• Downstream stabilising after subsidy removal, says Lokpobiri

The Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, yesterday said a $540 billion annual investment in oil and gas recovery and associated infrastructure is required globally to guarantee stable energy supply. He based his submission on the projections of a United Nations’ (UN) report. The Minister spoke yesterday at the opening ceremony of the 19th OTL Africa Downstream Energy Week 2025 which began in Lagos. It has as its theme: “Energy Sustainability: Growth Beyond Boundaries & Competition.”
According to him, the recent report by the UN underscores the urgent need for renewed global investment in the oil and gas industry to meet growing global population and energy demands.
The minister also made it known that Nigeria’s downstream sector is gradually stabilising following the removal of fuel subsidy and the liberalisation of petroleum product pricing- a development is described as a “bold and necessary step to attract private sector investment.”
“Subsidy was not sustainable. It discouraged private investment and placed a heavy financial burden on the government. What we are seeing now is a more competitive environment that encourages efficiency, accessibility and availability of petroleum products,” he explained.
In similar vein, the Chairman of the Advisory Board of OTL Africa Downstream Energy Week, Otunba Adetunji Oyebanji, in his opening speech, explained that while the removal of fuel subsidies and market liberalisation in the downstream sector may have presented short-term difficulties, they also mark necessary steps toward building a competitive, efficient and innovation-driven sector. He noted the ongoing progress in logistics optimisation, storage efficiency and digital trading platforms as signs of renewal within the industry.
“The downstream market is evolving amid both turbulence and transformation. Success will depend on our ability to combine innovation with policy stability and operational efficiency,” he said, even as he called for renewed collaboration, policy consistency and innovation to drive Africa’s energy sustainability and competitiveness in a rapidly changing global landscape.
Oyebanji said the conference’s theme underscores the need for Africa and Nigeria to look beyond conventional limits and create an energy future anchored on integration, inclusiveness, and responsible growth.
To this end, Lokpobiri therefore assured that as the world rethinks its approach to energy transition and returning focus to hydrocarbon development as a means of ensuring global energy security, the federal government, he said, is committed to deepening investment in the country’s oil and gas sector.
“The world has come to realise that energy transition cannot happen in a vacuum. Even as we pursue cleaner sources, the global economy still runs on oil and gas. Without substantial investment in these resources, there will be no financial capacities to fund the energy mix we all desire,” Lokpobiri stated.
He noted that while discussions around climate change and net-zero commitments remain important, the realities of global energy consumption and population growth have made it clear that hydrocarbons will continue to play a central role in the foreseeable future.
“Africa, with its population now 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 economic stability across the continent,” he said.
Lokpobiri commended President Bola Tinubu for taking decisive policy actions that have repositioned the downstream sector for long-term growth.
“It takes a courageous leader to make decisions that may be unpopular today but are necessary for the country’s future stability. What we are experiencing now is the outcome of such bold leadership,” he said.
He added that ongoing reforms in the oil and gas industry are geared toward ensuring energy security, encouraging domestic refining and fostering private sector participation across the value chain.
The minister also called on stakeholders in the downstream sector to align with the government’s policy direction and contribute to building a more sustainable and diversified energy future.
“We are no longer just talking about transition; we are talking about an energy mix that guarantees energy security for Africa. Every stakeholder must align with this vision to create the Africa we want,” Lokpobiri emphasised.
According to Oyebanji, the OTL Africa Downstream Energy Week remains a bridge between policy and practice, bringing together regulators, operators, investors and innovators to shape the future of Africa’s downstream energy industry.
“Energy sustainability is not merely about preserving resources; it is about ensuring that our growth today does not compromise the prosperity of tomorrow. We must build an industry that is competitive, responsible, and adaptable to a rapidly changing global environment,” he admonished.
Oyebanji, a former Chairman of the Major Energy Marketers Association of Nigeria (MEMAN), observed that the global energy sector is undergoing major shifts, driven by geopolitical tensions, supply uncertainties and the accelerating march towards energy transition.
He noted that conflicts in Eastern Europe and the Middle East have kept oil markets tight, while the global push toward cleaner fuels and renewables is reshaping investment priorities.
For Africa, he further said, these trends present both challenges and opportunities, insisting that the continent, richly endowed with natural resources and human capital, must move beyond being just a supplier of raw hydrocarbons to becoming a hub for innovation, efficiency 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 echoed.
Oyenabji emphasised that Nigeria remains central to Africa’s energy transformation. The deregulation of the downstream petroleum sector, renewed focus on gas commercialisation and expanding infrastructure, he said, have laid a foundation for long-term growth.
However, he cautioned that sustained progress depends on policy stability, regulatory transparency, and institutional consistency. Investors, he noted, thrive on predictability, and long-term capital inflows which only comes with confidence in the regulatory environment.
Oyebanji called for a new mindset where collaboration becomes the new competition, urging industry players to balance innovation with inclusiveness and competition with cooperation.
“Our capacity to grow beyond boundaries depends not only on how hard we compete but on how well we cooperate,” he said.
He added that the future of energy lies in integration — bridging hydrocarbons, renewables, and alternative energy sources — to create a system that promotes both growth and environmental responsibility.
Oyebanji noted that over the past 19 years, OTL Africa Downstream Energy Week has evolved into the continent’s leading platform for policy dialogue, business networking, and innovation in the downstream value chain.
He urged stakeholders to seize the moment to define Africa’s path toward energy sustainability through infrastructure investment, capacity building and transparent governance. “We must invest in pipelines, depots, data systems and digital tools. We must build capacity through research and innovation. Above all, we must hold ourselves accountable to the highest standards of transparency and environmental responsibility,” he said.
The OTL Africa Downstream Energy Week, now in its 19th edition, serves as a premier platform for policy dialogue, industry networking, and investment promotion across Africa’s downstream petroleum value chain.