Lagos State Governor Babajide Sanwo-Olu and OTL Africa Downstream Energy Week Advisory Board Chairman, Otunba Adetunji Oyebanji, have called for stronger petroleum infrastructure and lower energy costs, warning that increased domestic refining must translate into affordable products for consumers.
They spoke on Monday at the opening of the 20th OTL Africa Downstream Energy Week at the Lagos Oriental Hotel, Victoria Island, Lagos.
Sanwo-Olu said Nigeria’s downstream sector had changed significantly since the removal of petrol subsidies three years ago, citing increased domestic refining and a decline in imports.
He disclosed that the Dangote Refinery produced about 42 million litres of petrol daily in August, while imports fell by 26 per cent to approximately 14.6 million litres per day.
But the governor said production figures alone could not determine the sector’s success.
“A refinery’s output is not the final measure of success. The measure is whether product is available where and when Nigerians need it, and what they pay for it,” he said.
He urged private investors to expand storage, depots, pipelines and distribution networks, arguing that adequate infrastructure was critical to improving supply and moderating costs.
Sanwo-Olu also highlighted Lagos State’s efforts to reduce transport fuel demand through rail development and compressed natural gas (CNG) adoption. He said the Blue Line had carried more than six million passengers since operations began in 2023, while 152 First and Last Mile buses had been converted to CNG, cutting their fuel costs by nearly half.
The state has also introduced 2,000 CNG-powered trucks under its haulage reform programme, he added.
Oyebanji said Africa’s downstream sector had made progress in domestic refining, market reforms and pipeline development, but warned that import dependence, inadequate infrastructure and foreign exchange constraints continued to undermine supply and affordability.
He cited geopolitical conflicts, insecurity along key shipping routes and disruptions to Russian supplies as additional pressures on cargo costs and delivery schedules.
According to him, expanding refining capacity would not guarantee energy security without reliable feedstock, efficient operations and effective links between refineries, storage facilities and consumers.
“Downstream development depends on the connections between assets. A refinery needs dependable feedstock and customers; a storage terminal needs efficient transport; and every investment needs rules that sustain confidence,” he said.
Oyebanji said OTL provides a platform for policymakers, regulators, investors and industry operators to address market challenges and explore commercial partnerships.