The Federal Government has reaffirmed its commitment to ensuring that every barrel of crude oil produced in Nigeria delivers tangible benefits to the nation and its citizens, both locally and internationally.
Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, made this known on Tuesday while speaking at the 2025 CORAN Summit held in Lagos. He emphasized that the government is making deliberate efforts to strengthen domestic refining capacity as part of a broader push toward energy independence and national economic growth.
Represented at the event by his Technical Adviser, Ndah Adaba, the minister noted that improving local refining capacity and enhancing energy security remain core to Nigeria’s long-term development goals.
According to Lokpobiri, the Federal Government is committed to ensuring that indigenous refiners receive consistent crude supply through the Domestic Crude Oil Supply Obligation (DSCO) framework. He added that this policy is crucial to the administration’s drive for sustainable energy self-sufficiency.
As part of the policy shift, the minister revealed that the ‘Naira-for-Crude’ sales agreement will continue to serve as a key mechanism to reduce fuel production costs, mitigate exchange rate fluctuations, and support local refiners.
He further disclosed that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) had simplified the licensing process — from the Licence to Establish, to Construct, and to Operate — to eliminate unnecessary bottlenecks and ensure credible investors are encouraged rather than frustrated by bureaucracy.
“Beyond the licensing phase,” he said, “government is actively facilitating crude supply to domestic refiners through the effective implementation of the DSCO. No country can claim true energy independence without refining its own crude oil.”
The minister noted that the timing of the summit, themed “Refinery – Key to Energy Security in Africa,” was crucial as Nigeria and the continent at large stand at a defining moment. He stressed that decisive steps are needed to safeguard Africa’s energy future, strengthen local refining, and make the continent a net exporter of petroleum products.
Under President Bola Tinubu’s Renewed Hope Agenda, Lokpobiri said indigenous refining has been identified as a cornerstone for driving energy independence, job creation, and industrial revitalization.
He highlighted successful examples of local refineries, such as Dangote Refinery & Petrochemical, Waltersmith Petroman Refinery, and Aradel Holdings, describing them as clear proof that Nigerians possess the capability and determination to refine crude domestically.
“These refineries are not merely infrastructure projects,” he said. “They stand as symbols of confidence in our policy direction. Our goal is to replicate such success across all oil-producing states.”
Lokpobiri also announced the government’s move to extend Nigeria’s refining influence across West Africa through the creation of the West African Fuel Reference Market — a strategy designed to position Nigeria as a regional hub for refining and petroleum supply.
He explained that with increased refining capacity, Nigeria will not only meet its internal energy needs but also emerge as a dependable supplier to neighbouring countries, cutting reliance on distant refineries and expensive maritime imports.
“This vision aligns with the African Union’s energy integration plan and the African Continental Free Trade Area (AfCFTA) objective of promoting intra-African trade,” the minister said.
Looking ahead, Lokpobiri assured that the government will continue to guarantee feedstock security for all licensed refiners and expand fiscal incentives to attract additional investments into the oil and gas downstream sector.
He also emphasized ongoing inter-agency collaboration among the Ministry of Petroleum Resources, NMDPRA, NUPRC, and security agencies to tackle crude theft, curb pipeline vandalism, and foster positive engagement with host communities.
The minister urged African nations to deepen cooperation in areas such as product exchange, logistics, and shared energy infrastructure, stressing that the continent’s path to energy security runs through its own refining capacity.
“The road to Africa’s energy independence passes through the gates of our refineries and the institutions that sustain them,” Lokpobiri declared. “The Federal Government remains committed to empowering indigenous refiners, strengthening regulatory agencies, and creating an enabling environment for sustainable downstream growth.”
He called on stakeholders — industry players, regulators, investors, and policymakers — to view the 2025 CORAN Summit as a renewed call to action: “to build an Africa that refines what it produces and powers its own future through its resources.”
Meanwhile, a new report has revealed that the importation of Premium Motor Spirit (PMS), also known as petrol, into Nigeria has plunged to its lowest level in eight years.
According to energy analytics firm Argus, Nigeria imported 116,000 barrels per day — equivalent to 18.44 million litres — of petrol in September 2025, down from 154,000 barrels per day (about 24.49 million litres) in August. This represents the lowest monthly import figure since Kpler began its records in 2017.
The drop comes amid major government reforms and the expansion of local refining capacity, which are steadily reshaping Nigeria’s downstream oil market. The report also noted that the Dangote Refinery, capable of processing 650,000 barrels per day, recently operated below capacity due to ongoing maintenance and a brief industrial action by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN).
