Sen. Heineken Lokpobiri, Minister of State for Petroleum Resources, (Oil)
…West African Fuel Reference Market to position Nigeria as a regional refining and product supply hub to other West African subregion.
-Felix Douglas
In his keynote address, the Minister of State for Petroleum Resources (Oil), Sen. Heineken Lokpobiri, spoke at the Crude Oil Refinery Owners’ Association of Nigeria (CORAN) with the Theme: “Refining – Key to Energy Security in Africa’’ in Lagos.
He stated further that the oil industry has seen indigenous success stories such as Dangote Refinery & Petrochemical, Waltersmith Petroman Refinery, Aradel Holdings, etc. which collectively demonstrate that Nigerians have both the capacity and the will to refine Nigeria’s crude oil locally.
These projects are more than facilities; they are symbols of confidence in our policy direction, and the country is committed to replicating them across all oil-producing states.
Strengthening the Downstream Sector
The Minister said through the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the government has streamlined the licensing regime; from licence to establish to construct and operate — ensuring that genuine investors are supported, not hindered, by bureaucracy.
He said beyond licensing, government has continued to consolidate on facilitating the access to crude oil supply through the effective implementation of the Domestic Crude Oil Supply Obligation (DSCO); this is because no nation can claim energy independence if it cannot refine its own crude.
The Federal Government is therefore committed to ensuring that every barrel produced in Nigeria contributes to meeting both the country domestic and international obligations.
Lokpobiri added that as part of deliberate policy and broader strategy, the naira – for crude sale agreement will continue to be a major step to reduce cost of fuel production, mitigate the exposure to the fluctuating exchange rate and of course to generally support indigenous refining.
Regional Integration and the West African Fuel Reference Market
Lokpobiri was of the view that in the bid to extending refining obligation beyond the shores of Nigeria, the country has launched West African Fuel Reference Market to position Nigeria as a regional refining and product supply hub to other West African subregion.
With increased local refining capacity, Nigeria will not only meet its domestic demand but will also serve as a dependable supplier of refined products to neighbouring countries, hence reducing the region’s reliance on distant refineries and maritime imports.
This aligns with the African Union’s vision for energy integration and intra-African trade under the African Continental Free Trade Area (AFCFTA).
The Way Forward
The Minister said as the country looks ahead, its priorities are clear:
Ensure feedstock security for all licensed refiners; deepen fiscal incentives to attract more investment. Enhance collaboration between the Ministry, NMDPRA, NUPRC, and security agencies to tackle crude theft, pipeline vandalism and while enhancing our relationship with the host communities.
Foster collaboration among African nations for product exchange, logistics, and shared energy infrastructure.
Lokpobiri believed that the path to Africa’s energy security runs through the gates of its refineries and its interrelated institution.
The Minister said the Federal Government remains fully committed to supporting indigenous refiners, strengthening regulatory institutions, and creating an enabling environment for sustainable downstream growth.
He said CORAN Summit 2025 serves as a renewed call – to industry players, regulators, investors, and policymakers to unite in achieving an Africa that refines what it produces and powers its future through its own resources.
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