Federal Government has said it is doubling down on its commitment to boost local crude oil refining capacity, with a clear focus on turning Nigeria into a regional energy powerhouse.
Speaking at the 2025 COREN Summit in Lagos on Tuesday, Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, said Nigeria must ensure every barrel of crude contributes tangible value both domestically and internationally.
Represented at the summit by his Technical Adviser, Ndah Adaba, the minister emphasised that refining Nigeria’s crude at home is no longer a policy option, but a national necessity.
“No nation can claim energy independence without the ability to refine its own crude,” Lokpobiri declared.
The summit, themed “ _Refinery – Key to Energy Security in Africa,”_ brought together engineers, energy experts, and policymakers from across the continent.
It served as a platform to highlight local refining as a critical piece in achieving energy security across Africa.
Lokpobiri noted that under President Bola Tinubu’s Renewed Hope Agenda, indigenous refining has been positioned as a key driver of energy independence, economic diversification, and industrial growth.
“We have seen indigenous success stories such as Dangote Refinery & Petrochemical, Waltersmith Petroman Refinery, and Aradel Holdings. These demonstrate that Nigerians possess both the capacity and the will to refine Nigeria’s crude oil locally,” he said.
“These projects are more than just facilities—they symbolize confidence in our policy direction. We are committed to replicating such success across all oil-producing states.”
*Naira-for-crude, licensing reform, and domestic supply*
Lokpobiri also highlighted ongoing policy reforms to support the growth of domestic refining.
He pointed to the “Naira for Crude” initiative as a strategic move to shield fuel production from exchange rate volatility while empowering local refiners.
He further explained that through the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the government has streamlined the entire licensing process—from issuance of the Licence to Establish (LTE) to construction and operations—ensuring credible investors aren’t bogged down by bureaucracy.
“Beyond licensing, the government is also facilitating crude oil supply to domestic refiners through effective implementation of the Domestic Crude Oil Supply Obligation (DSCO),” he added.
*Strengthening regional role and security collaboration*
In an ambitious bid to extend Nigeria’s refining leadership beyond its borders, the minister revealed that the government had launched the West African Fuel Reference Market.
The initiative aims to establish Nigeria as a reliable refining hub and product supplier across the subregion.
“With increased domestic refining capacity, Nigeria will not only meet internal demands but also become a reliable supplier to neighbouring countries,” Lokpobiri noted.
“This aligns with the African Union’s energy integration goals and intra-African trade objectives under the AfCFTA.”
The minister also pointed to broader efforts underway to support security around the oil and gas value chain.
These include enhanced cooperation between the Ministry of Petroleum Resources, NMDPRA, NUPRC, and security agencies to tackle crude oil theft, pipeline sabotage, and foster better engagement with host communities.
*A call for continental collaboration*
Lokpobiri urged African nations to deepen cooperation in energy logistics, infrastructure, and product exchange, stressing that shared goals can only be achieved through regional unity.
“The path to Africa’s energy security runs through the gates of our refineries and the institutions that support them,” he said.
“Let this COREN Summit serve as a renewed call to industry players, regulators, investors, and policymakers—to unite in building an Africa that refines what it produces and powers its future through its own resources.”
NAN
