Minister of state for petroleum resources (oil), Heineken Lokpobiri, has made a case for the development of more refineries in Africa, saying the Dangote Petroleum Refinery is not enough to meet the continent’s needs.
He made the call at the second edition of the West Africa Refined Fuel Market Conference in Abuja.
According to him, even though Dangote Refinery is increasing its refining capacity to 1.4 million barrels, it is not enough for the African continent.
He said Nigeria must leverage its strategic position and resources to drive regional energy security.
Lokpobiri said the federal government’s deregulation of the petroleum sector had unlocked investment opportunities and created a more competitive environment for the industry, adding that Nigeria cannot fully benefit from its petroleum resources without developing adequate refining, midstream and downstream infrastructure.
“Refining is not enough; we need to increase our refining capacity to about four million barrels to service the entire African continent,” he said.
The minister said Nigeria’s strategic location, large resource base and market size put the country in a strong position to supply refined petroleum products across Africa.
He urged investors to take advantage of the opportunities created by the ongoing reforms and invest in refining, storage, transportation and other critical petroleum infrastructure.
Lokpobiri said the government was committed to creating an environment capable of attracting domestic and international capital into the petroleum sector.
He also called for stronger regulatory collaboration among West African countries to facilitate cross-border investment and petroleum trade.
The minister underscored the need for harmonised standards and coordinated regulation, saying regional cooperation was critical to building a sustainable West African petroleum market.
He said Nigeria’s success would have a multiplier effect across the region, adding that the country must work with neighbouring countries to achieve shared energy security and economic prosperity.
Lokpobiri further called for a sustainable pricing mechanism, saying market-driven pricing was essential to attracting investment and developing a competitive petroleum industry.
He said Africa’s huge and growing energy market provided an opportunity for Nigeria to emerge as a leading supplier of refined petroleum products.
Also speaking, Rabiu Umar, chief executive officer (CEO), Nigerian Midstream and Downstream Petroleum Authority (NMDPRA), said crises in Western Europe and the Mediterranean should not automatically determine petroleum product prices in Nigeria and other African countries
“There may be issues which have absolutely nothing to do with what is going on here. And prices should be determined on the basis of geopolitical issues, demand and supply, and complexities within the market,” he said.
“So we feel this is a great opportunity for Africa, and West Africa in particular, to really have something that is specific to us.”
