Financial Energy Review
……by Ben Ndubuwa….
The Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, has underscored the vital role of the downstream sector in Nigeria’s petroleum industry, reaffirming the Federal Government’s commitment to optimizing the country’s refining capacity.
Speaking during a courtesy visit by the CEO of OTL Downstream Development in Africa Ltd./Gte., Mrs. Joyce Akabogu, and her team to the Ministry, Lokpobiri emphasized the economic potential of refining crude oil locally. “While sales from a barrel of crude oil is estimated at around $70, income accruable from derivatives of crude oil refining could be three times more,” he stated. “Realizing 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.”
The Minister highlighted the administration of President Bola Ahmed Tinubu’s firm belief that increasing local refining capacity “will help reduce the dependency on imported refined petroleum products and ensure a competitive market for the benefit of all Nigerians, leading to continued decrease in the prices of petroleum products.” He further pointed out that the removal of subsidies was a strategic move aimed at strengthening Nigeria’s refining capabilities, ensuring the country eventually becomes a net exporter of petroleum products.
In her remarks, Mrs. Akabogu noted that her visit was to engage the Ministry on the forthcoming OTL Africa Downstream Energy Week. She described the event as a key platform for fostering relationships across the downstream energy value chain, with a strong focus on pan-African collaboration and growth.
Responding, Senator Lokpobiri pledged the Ministry’s support for the OTL Africa Downstream Energy Week, highlighting its exclusive focus on the downstream sector, which sets it apart from other industry events. He commended the event organizers for initiating preparations well in advance, calling it a proactive step that signals the event’s potential to drive industry growth and sustainability.
The Minister further confirmed his participation in the 2025 edition of the OTL Africa Downstream Energy Week, along with agencies under the Ministry, underscoring Nigeria’s strategic role in the global energy sector.
