The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, has emphasized that increasing local refining capacity will help lower fuel prices and reduce Nigeria’s reliance on imported petroleum products.
Lokpobiri reaffirmed the Federal Government’s commitment to optimizing the downstream sector to strengthen the country’s energy security.
He made this disclosure 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 petroleum ministry.
According to a statement by OTL, Lokpobiri noted that while many operators tend to overlook its importance, the downstream sector plays a crucial role in the petroleum value chain due to its significant revenue potential and impact on the national economy.
He stated that “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.”
He spoke further, “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.”
The oil minister stressed that President Bola Tinubu’s administration is committed to enhancing local refining capacity, stating that this will reduce reliance on imported petroleum products, create a more competitive market, and ultimately drive down fuel prices for Nigerians.
He further explained that removing subsidies was a strategic move to enhance Nigeria’s refining capacity and position the country as a net exporter of petroleum products.
The CEO of OTL Downstream Development in Africa, Akabogu, stated that the visit aimed to engage the Ministry of Petroleum Resources ahead of the upcoming OTL Africa Downstream Energy Week. She noted that the event seeks to strengthen relationships within the downstream energy sector and serve as a pan-African platform for collaboration and growth.
In response, Lokpobiri expressed the ministry’s support for the OTL Africa Downstream Energy Week, highlighting its exclusive focus on the downstream sector. He affirmed that Nigeria is well-suited to host the event, given its strategic role in the global energy industry.
He reaffirmed that Nigeria is well-positioned to host the event due to its vital role in the global energy sector.
Lokpobiri also praised the OTL Africa Downstream Energy Week secretariat for its early preparations, noting that this proactive approach reflects the event’s potential to drive industry growth and sustainability.
