The Federal Government has reaffirmed its commitment to strengthening Nigeria’s local refining capacity by ensuring consistent crude oil supply to indigenous refiners while dismantling bureaucratic barriers that have long discouraged investment in the downstream sector.
Delivering this assurance at the 2025 CORAN Summit in Lagos, the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, emphasized that every barrel of crude produced in Nigeria must now translate into measurable economic value both at home and abroad.
Speaking through his Technical Adviser, Ndah Adaba, Lokpobiri noted that the government’s current focus is on energy self-sufficiency, refining expansion, and creating an enabling environment for credible investors.
Strengthening Local Refining Through Policy and Reform
Lokpobiri underscored that one of the government’s deliberate policies — the Domestic Crude Oil Supply Obligation (DSCO) — would guarantee feedstock availability to licensed local refiners.
“Beyond licensing, the government is facilitating crude supply to domestic refiners through the DSCO,” he said. “No nation can claim energy independence without refining its own crude.”
He added that the recently introduced ‘Naira-for-Crude’ initiative remains a strategic move to stabilize foreign exchange volatility, lower production costs, and encourage indigenous participation in the sector.
In collaboration with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the ministry has streamlined the three-stage licensing process — Licence to Establish, Licence to Construct, and Licence to Operate — reducing unnecessary red tape and delays that previously hampered private refinery projects.
Driving the Renewed Hope Energy Agenda
Under President Bola Tinubu’s Renewed Hope Agenda, indigenous refining has been identified as a key driver of energy independence, job creation, and industrial revitalisation.
Lokpobiri cited the success stories of the Dangote Refinery, Waltersmith Petroman Refinery, and Aradel Holdings, describing them as proof that Nigerians possess the expertise and determination to refine the nation’s crude domestically.
“These projects are more than industrial plants; they symbolise confidence in our policy direction,” the minister stated. “Our goal is to replicate this success across all oil-producing states.”
He further noted that the timing of the CORAN Summit was critical as Nigeria and the African continent face a defining moment to strengthen their refining capabilities and ensure long-term energy security.
Expanding Nigeria’s Refining Influence Across West Africa
The minister also revealed that the Federal Government had launched the West African Fuel Reference Market, designed to make Nigeria the refining and petroleum supply hub for the subregion.
“With increased domestic refining, Nigeria will not only meet its internal demand but also become a reliable supplier to neighbouring countries,” Lokpobiri said. “This aligns with the African Union’s vision for energy integration and trade under the AfCFTA framework.”
He emphasized that a strong local refining sector would reduce dependence on costly maritime imports and distant refineries, saving the country billions in foreign exchange while supporting regional economic growth.
Coordinated Action Against Crude Theft and Vandalism
Lokpobiri highlighted ongoing collaboration between the Ministry of Petroleum Resources, NMDPRA, NUPRC, and security agencies to combat crude theft and pipeline vandalism — twin challenges that have long undermined Nigeria’s oil production output.
He assured stakeholders that the Tinubu administration was committed to protecting energy infrastructure, fostering community relations, and enhancing fiscal incentives to attract further investments into the sector.
“The path to Africa’s energy security runs through the gates of our refineries,” Lokpobiri said. “The Federal Government remains fully committed to supporting indigenous refiners and building institutions that can power our continent through its own resources.”
Petrol Imports Drop to Eight-Year Low
In a related development, a recent Argus report revealed that Nigeria’s importation of Premium Motor Spirit (PMS), commonly known as petrol, fell to an eight-year low in September 2025.
Data showed that the country imported about 116,000 barrels per day (18.44 million litres) last month — a sharp decline from 154,000 barrels per day (24.49 million litres) recorded in August.
Industry observers attribute this decline to expanding local refining capacity and ongoing government reforms that are reshaping the downstream oil market.
Despite temporary slowdowns at the 650,000-barrel-per-day Dangote Refinery due to maintenance and industrial action by PENGASSAN, analysts believe the long-term trajectory for domestic production remains positive.
Building a Self-Reliant Energy Future
As Nigeria deepens its refining capacity, the Lokpobiri-led ministry’s approach signals a shift from crude export dependency toward value-added domestic processing.
By tackling supply challenges, reducing bureaucratic friction, and incentivizing private refiners, the Federal Government is positioning the country to achieve true energy sovereignty — one that not only powers homes and industries but also redefines Nigeria’s role in Africa’s energy landscape.