Lokpobiri says local refineries will reduce fuel prices, import dependence

• Heineken Lokpobiri said local refineries will reduce fuel prices and Nigeria’s import dependence
• He stressed the importance of the downstream value chain in Nigeria’s petroleum industry
• Lokpobiri said removal of fuel subsidy was strategic to bolstering oil sector capacity

The Minister of State Petroleum Resources (Oil), Heineken Lokpobiri, says local refineries will help in reducing the prices of refined petroleum products as well as Nigeria’s dependence on imported fuel.

Lokpobiri stressed that achieving these goals is why the Federal Government is focused on enhancing the country’s refining capacity, reflected in the recent issuance of licenses for the development of additional refineries and ongoing support for the local refining industry.

He stated this while receiving the Chief Executive Officer of OTL Downstream Development in Africa Ltd/Gte, Mrs Joyce Akabogu, who led her team on a courtesy visit to the ministry.

According to the statement by OTL, the minister highlighted the importance of the downstream value chain of the petroleum industry to Nigeria.

It said Lokpobiri observed that though many operators tend to overlook its importance, the downstream sector is critical to the overall petroleum value chain, given its significant revenue potential and value to the national economy.

“While the sale from a barrel of crude oil is estimated at around $70, income accruable from derivatives of crude oil refining could be three times more.

“Realising its value to the economy, the ministry is focused on enhancing in-country refining capacity, reflected in the recent issuance of licenses for the development of additional refineries and ongoing support for the local refining industry,” he stated.

‘Subsidy removal strategic to bolstering oil sector capacity’

Lokpobiri noted that President Bola Tinubu’s administration believes in the capacity of local refineries, necessitating the removal of fuel subsidy in 2023 to bolster the capacity of the oil sector.

He stated that the fuel subsidy removal will strengthen Nigeria’s refining capabilities and ensure the country is a net exporter of petroleum products.

Lokpobiri added that President Tinubu believes that boosting local refining capacities “will help reduce the dependency on imported refined petroleum products and ensure a competitive market for the benefit of all Nigerians, leading to a continued decrease in the prices of petroleum products.”

Ministry’s participation in OTL Africa Downstream Energy Week

The CEO of OTL Downstream Development in Africa, Akabogu, said the visit was to engage the Ministry of Petroleum Resources towards the forthcoming OTL Africa Downstream Energy Week.

Akabogu noted that the event is aimed at fostering relationships within the downstream energy value chain and providing a pan-African platform for collaboration and growth.

In his response, Lokpobiri expressed the ministry’s support for the OTL Africa Downstream Energy Week, noting that it is a focused initiative dedicated to the downstream sector, unlike other initiatives that take a more holistic approach.

He affirmed that Nigeria is well-positioned to host the event, given its critical role in the global energy sector and confirmed his participation in the 2025 event, as well as agencies under the ministry.

More investments expected in oil sector in 2025 – FG

Meanwhile, TheRadar earlier reported that the Federal Government said more investment is expected in the oil sector in 2025 due to reinforced investor confidence in the industry.

The Special Adviser on Energy to President Bola Tinubu, Olu Verheijen, stated this at the Nigeria International Energy Summit 2025 on Monday, February 24.