• 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.

· Commends Tinubu’s reforms, projects $55bn annual revenue

· Plans NGX listing to empower Nigerians

President of Dangote Industries Limited, Aliko Dangote, has explained that the decision to expand the Dangote Petroleum Refinery from 650,000 barrels per day (bpd) to 1.4 million bpd is driven by emerging opportunities across Africa, growing regional demand for cleaner fuels and Nigeria’s evolving policy environment that encourages local refining.

Speaking at a media briefing in Lagos, Dangote said the $20 billion facility, already the largest single-train refinery in the world, will more than double its capacity within the next three years, making it a global leader in petroleum refining and a major driver of Africa’s industrial renaissance.

“This expansion reflects our confidence in Nigeria’s future, our belief in Africa’s potential and our commitment to building energy independence for our continent and the world. It also is about confidence in Nigeria, in Africa and in our capacity to shape our own energy future.

”It is the dream of President Bola Ahmed Tinubu GCFR, for Nigeria to emerge as one of the major suppliers of petroleum products in the world. And with his strong backing through his policies, we are taking on the challenge to make this happen,” Dangote said.

According to him, the expansion reflects the group’s belief in Africa’s potential to achieve energy security and transform its economy from being an exporter of raw crude to a hub for refined petroleum products.

Dangote revealed that the expansion project would be executed over the next three years and would be financed through a mix of cash flow, public listing and strategic investors. When completed, the refinery will surpass India’s Jamnagar Refinery, currently the world’s largest facility, cementing Nigeria’s position as a global refining hub.

He said the refinery will also expand its polypropylene production capacity from 900,000 metric tonnes to 2.4 million metric tonnes per annum, further boosting the output of linear alkylbenzene, a key ingredient in detergent manufacturing, along with additional production of base oils.

“With this expansion, the refinery transitions from producing Euro V to Euro VI fuel standards, meeting the highest global environmental benchmarks. We will also expand our power generation capacity to 1,000 megawatts, ensuring complete operational self-sufficiency. More than 85 per cent of our workforce will be Nigerians, with continuous investment in skills development and technology transfer. Our commitment to safety, sustainability and local participation remains unwavering throughout every phase of the expansion,” he said.

Highlighting the economic impact of the project, Dangote said the expansion would further strengthen Nigeria’s energy security, reduce foreign exchange outflows, and save the country billions of dollars annually that would otherwise go into importing refined products.

He estimated that the refinery’s revenue could exceed $55 billion annually, making it one of the most valuable industrial assets on the African continent.

Dangote reaffirmed plans to list a significant portion of the refinery’s shares on the Nigerian Exchange (NGX) within the next year, describing it as part of efforts to democratise ownership and allow Nigerians to share in the value creation.

“Our main listing will be here in Nigeria to give Nigerians value. We want the Dangote Refinery to be the golden stock of the Exchange. Listing outside Nigeria is secondary to us. We want this to be a national asset in every sense. This is a step towards broader ownership and market transparency. Therefore we call on all Nigerians to seize this window, to benefit from this golden opportunity. Our long-term goal remains clear: to build Africa’s leading integrated energy and petrochemical hub, the first of its kind on the continent,” Dangote said.

He said the refinery’s strong cash flow, profitability prospects and strategic positioning would make it attractive to both local and global investors.

“This expansion will create additional jobs, support thousands of SMEs, and deepen our industrial base. Our goal has never been just to refine oil, but to refine opportunities for our people. It is a vote of confidence in Nigeria, in the reforms of President Bola Ahmed Tinubu’s administration, and in the ability of Africans to build and manage world-class infrastructure,” he added.

He expressed gratitude to President Tinubu and the Federal Government for supporting industrialisation policies such as Nigeria’s First, Naira-for-Crude and the ‘One-Stop Shop’ initiatives, which he said have emboldened investors to take on transformative projects.

He also commended the government’s intervention in mediating recent disruptions at the refinery linked to union activity and sabotage attempts, calling it a demonstration of effective collaboration between the public and private sectors.

Despite not yet recouping the initial investment in the 650,000 bpd phase, Dangote said the group is focused on long-term transformation rather than short-term returns.

“Refining is a long-term project. We are expanding because we believe in Africa. Without this refinery, Nigeria would still be buying dollars at ridiculous rates and depleting our reserves to import fuel,” he said.

He emphasised that Nigeria’s pump price remains among the lowest in the region despite the refinery’s production of higher-quality, cleaner fuels that have reduced toxic dumping in the country.

Dangote emphasised that the refinery has already made a difference by stabilising local fuel supply, helping to strengthen the naira, and preventing capital flight.

“Nigerians today buy petrol at roughly half the price of what our neighbours pay and it is even cheaper than in Saudi Arabia. Our product is of higher quality, meeting Euro VI standards, and it has significantly reduced the dumping of toxic fuel into our market,” he said.

As Nigeria approaches the festive season, Dangote assured the public that there would be no fuel scarcity or price hike during the ember months, despite recent global price increases.

“In the last three days, we have witnessed an eight per cent spike in global oil prices. But I want to assure Nigerians that the Dangote Refinery is fully committed to maintaining uninterrupted supply of petrol throughout the festive period. For the first time in many years, Nigerians can look forward to a Christmas and New Year free of fuel anxiety,” he added.

Dangote praised the Federal and Lagos State Governments for their continued support, along with the company’s host community in Lekki and its financial and technical partners.

“This expansion is not just about capacity; it is about confidence — in our people, in our government and in our continent. Together, we are building a stronger Nigeria and redefining what is possible for Africa,” the DIL President said.

He called on other investors holding refinery licences to emulate the example, urging collaboration in achieving President Tinubu’s vision of making Nigeria the refining hub of Africa.

“When Africa builds its own capacity, it builds its own destiny,” Dangote concluded.

The 12th edition of the Nigeria Energy Exhibition and Conference, a foremost West African influential energy event, begins in Lagos on Monday. The three day energy conference will hold at the Landmark Centre.
Organised by and held with the endorsement of the Federal Ministry of Power, the event—themed “Powering Nigeria through investment, innovation and partnership”—will bring together thousands of energy professionals, decision-makers, and innovators to tackle Nigeria’s most pressing energy challenges and explore investment-driven solutions across the value chain.
According to Informa Markets- the event organisers, this year’s edition, now in its 12th year, will focus on unlocking the capital, policy reforms and technologies needed to build a more reliable and sustainable power sector.
Speaking at the pre event briefing, the Exhibition Manager, Energy Portfolio – MEA, Informa Markets, Ade Yesufu, emphasised the strategic focus of this year’s theme and its timeliness considering current reforms.
“The theme reflects the urgent need to address infrastructure gaps, mobilise investment, and accelerate reforms. Nigeria Energy 2025 will provide a platform where stakeholders can align on policies, forge new partnerships, and showcase innovations that can drive the sector forward,” Yesufu said.
He noted that the Nigeria Energy conference and exhibition continues to serve as a catalyst for collaboration and deal-making across generation, transmission, distribution, renewables, off-grid systems, and energy efficiency. “With Nigeria facing a critical infrastructure gap, slow-moving reforms, and investment bottlenecks, the 2025 edition seeks to spark actionable conversations around public-private partnerships, regulatory harmonisation, and emerging opportunities in areas like hydrogen, decentralised solar, and grid digitization,” Yesufu explained.
This year’s conference will feature insight-driven sessions led by industry thought leaders including the Special Adviser to the President on Power Infrastructure, Sadiq Wanka; the Commissioner, Lagos State Ministry of Energy and Mineral Resources, Biodun Ogunleye; the CEO, Azura Power, Edu Okeke; Vice Chair, Board of Directors, African Energy Council, Dr. Chinnan Dikwal and CEO, Egbin Power Plc, Mokhtar Bounour.
Yesufu added that the sessions will span five core focus areas: Power Deals & PPPs: Structuring bankable energy infrastructure projects; State Reform Strategies: Unlocking decentralised electricity markets; the Hydrogen Shift: Positioning Nigeria in the future energy economy; Grid Efficiency & Innovation: Advancing reliability through technology and Electricity Act in Action: Milestones, market liberalization.
With over 8,500 energy professionals, including energy commissioners, developers, regulators, financiers, and technology providers, expected to participate across three days of high-level summits, technical sessions, and interactive exhibitions, stakeholders insist that the Nigeria Energy programme continues to serve as the “go-to” platform for meaningful dialogue, partnerships, and investment opportunities across the energy value chain.