Nigeria to expand refining capacity, targeting African market – Minister

Nigeria aims to solidify its position as West Africa's energy hub by significantly expanding its petroleum refining capacity and infrastructure, according to Sen. Heineken Lokpobiri, Minister of State for Petroleum Resources (Oil).

Speaking at the West Africa Refined Fuel Market Conference in Abuja, Lokpobiri stated that Nigeria must leverage its strategic location and resources to drive regional energy security. He highlighted that the government's deregulation of the petroleum sector has spurred investment and fostered a more competitive industry.

"Refining is not enough; we need to increase our refining capacity to about four million barrels to service the entire African continent," Lokpobiri said. He emphasized that Nigeria's substantial resource base and market size uniquely position it to supply refined petroleum products across Africa.

The minister urged investors to capitalize on ongoing reforms by investing in refining, storage, transportation, and other critical petroleum infrastructure. He assured that the government is committed to creating an attractive environment for both domestic and international capital. Lokpobiri also called for enhanced regulatory collaboration among West African nations to facilitate cross-border investment and trade, stressing that harmonized standards and coordinated regulation are vital for a sustainable regional petroleum market.

He added that Nigeria's success in this endeavor would have a positive ripple effect across the region, promoting shared energy security and economic prosperity. Lokpobiri also advocated for a sustainable, market-driven pricing mechanism to attract investment and cultivate a competitive industry, noting that Africa's large and growing energy market presents a significant opportunity for Nigeria to become a leading supplier.

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Refining is not enough; we need to increase our refining capacity to about four million barrels to service the entire African continent.