Dangote refinery alone cannot meet Africa's fuel needs, says Nigerian government

Nigeria's Federal Government has asserted that the recently commissioned Dangote Petroleum Refinery, despite its significant capacity, is insufficient to meet the burgeoning demand for refined petroleum products across Africa. The government is now calling on both domestic and international investors to channel more capital into Nigeria's refining, midstream, and downstream sectors.

Heineken Lokpobiri, the Minister of State for Petroleum Resources (Oil), highlighted this need at the second West Africa Refined Fuel Market Conference in Abuja. He stated that Nigeria must leverage the success of the Dangote refinery and attract further investment to transition from merely supplying the West African market to becoming a major refined petroleum products hub for the entire continent. The conference brought together regulators, refiners, traders, financiers, and other energy industry stakeholders to advance plans for a transparent regional pricing system.

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The Dangote refinery is not enough. Despite the fact that the refinery is increasing its refining capacity to 1.4 million barrels. But it is not enough for the African continent. It’s the final capacity to open for middle buyers to be able to sell this entire African continent on top of the entire world.

Lokpobiri described the conference as a pivotal moment for Africa's pursuit of energy sovereignty. He acknowledged the private sector's achievement with the Dangote refinery but stressed that even its projected expanded capacity of 1.4 million barrels per day would not be enough for the continent's needs. "The Dangote refinery is not enough," Lokpobiri stated, emphasizing that Nigeria must aim higher than just serving the African continent and potentially the global market.

The minister urged investors to capitalize on Nigeria's expanding energy market, noting the country's strategic geographical location and its advantage of not being directly reliant on the Strait of Hormuz for crude and product supply routes. He encouraged investment not only in the upstream sector but also in the midstream and downstream segments. Lokpobiri stressed the importance of moving beyond exporting raw commodities and importing processed goods, seeing Nigeria's growing refining capacity as an opportunity to reshape this pattern and supply the wider African market.

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It’s the best time for us to attract as many investors as we can. Not just into the upstream, but into the midstream, and then the downstream.