We are worried about crude supply – SEE
Nigeria no longer promises, but performance – Analyst
By Udeme Akpan, Energy Editor
Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, said the federal government would support Dangote Refinery’s plan to increase its output to 1.4 million barrels per day, bpd from 650,000 bpd.
The management of Dangote Petroleum Refinery has already unveiled plans to expand the capacity of the refinery within the next three years.
However, Senator Lokpobiri said the plan would go a long way to meeting the demand in Nigeria and other parts of Africa, which has about 1.5 billion people, already a ready-made market for energy products.
Speaking at OTL Africa Downstream Energy Week in Lagos, yesterday, he said: “The Dangote Refinery’s expansion to 1.4 million barrels per day is part of the effort to serve West Africa and the entire continent.
“The Federal Government will fully support Dangote to achieve this. That is one of the reasons petrol subsidy was removed. With subsidy in place, the private sector cannot grow.
“The downstream and midstream sectors will only grow when the private sector can mobilize capital and invest locally. Deregulation and privatization pave the way for availability, accessibility, and affordability. No matter the challenges, if we don’t embrace these reforms, Nigeria’s economy could crumble.
“Before now, the government was spending over ₦2 trillion annually on fuel subsidies. Those funds are now being redirected to more productive uses. The truth is, the subsidy regime ended up subsidizing consumption across the West African sub region, not just Nigeria.”
Similarly, Otunba Oyebanji, Chairman Advisory Board of OTL Africa Downstream Energy Week, said: “Africa stands at a defining moment in its energy evolution. Across the continent, rising populations, industrialization, and urban expansion are driving energy demand at unprecedented rates. At the same time, investments in refining, gas infrastructure, and cross-border energy trade are reshaping the continent’s energy map.
“Nigeria, as Africa’s largest energy producer and consumer, occupies a central position in this transformation. The deregulation of the downstream petroleum sector, the renewed commitment to gas commercialization, and the focus on infrastructure development has laid a foundation for long-term growth. Yet, these gains must be deepened through sustained policy consistency, institutional stability, and innovation across the value chain.”
NNPCL renews commitment to infrastructural development
Similarly, the NNPC Ltd has reiterated its commitment to the development and revamping of downstream across the country to enhance collaboration and drive efficiency in the sector.
Group Chief Executive Officer, Engr. Bayo Ojulari, stated: “At NNPC, we are committed to deploying additional infrastructure across the oil and gas value chain while revamping our existing downstream infrastructure nationwide. These assets will be accessible to partners seeking to store and transport products, supporting strategic alliances and collaboration in the downstream sector.”
He disclosed that a cocktail of factors ranging from strategic policies and fiscal incentives to transparent and well-structured regulatory frameworks exemplified by the PIA have engendered expansion and growth in the sector requiring new skill sets and further investments in new lines of business such as Liquefied Petroleum Gas (LPG), Compressed Natural Gas (CNG), and mini-LNG projects.
He urged participants at the conference to discuss challenges and align on opportunities “to redefine energy systems in ways that are both profitable and sustainable, to forge cross-sector partnerships that transcend traditional competition, and to explore innovative business models and technologies that support decarbonization while driving economic value”.
We are worried about crude supply – SEE
On its part, the Society of Energy Editors, SEE, said it “noted with keen interest the audacious announcement by the Dangote Group to more than double the capacity of its landmark refinery to1.4 million barrels per day (bpd) by 2028. This bold vision, if realized, will not only cement the facility’s status as the largest single-site refinery in the world but represents a monumental leap for Nigeria’s long-held dream of energy self-sufficiency and export dominance.
“We hail the immense patriotism and investment drive demonstrated by AlikoDangote and his Group. In a climate often characterized by investor trepidation, this commitment of billions of dollars is a powerful vote of confidence in the Nigerian economy and its industrial potential.
“The operationalization of the first phase has already begun to alter the dynamics of the downstream sector, and this planned expansion signals an ambition that aligns with the nation’s economic aspirations.
“However, ambition must be grounded in pragmatism. The SEE is compelled to interrogate the single most critical question that this expansion plan raises: the sourcing of feedstock.”
It added: “The Dangote Refinery’s expansion deserves cautious applause. The state of the NNPCL refineries is a national tragedy that demands urgent, transparent action. For Nigeria to truly achieve energy self-sufficiency and become a net exporter, both narratives must converge towards success. The Dangote Group must solve its feedstock puzzle, and the NNPCL must, for once, deliver on its promises.”
Nigeria no longer promises, but performance – Analyst
However, Kunle Odusola-Stevenson, a Lagos-based analyst, stated: “The refinery is not just another industrial project; it is a public relations asset of immense strategic value to Nigeria — a monument to what vision, enterprise, and persistence can achieve when matched with purpose and scale.
“For Nigeria, that emblem is the Dangote Refinery — a colossal feat of engineering and ambition built on the edge of the Atlantic in Lekki, Lagos.
“It refines crude oil, yes, but more profoundly, it refines Nigeria’s global image — transforming the country from a net importer of petroleum products into the potential host of the largest single-train refinery complex in the world.
“The significance of the Dangote Refinery extends far beyond the economics of oil. It speaks to credibility and trust — the twin currencies of investment and diplomacy.
“For decades, international observers viewed Nigeria through the lens of missed opportunities and policy volatility. Today, the refinery stands as an emphatic rebuttal to that view — proof that the nation can deliver world-class projects built to global standards.
“This single achievement enhances Nigeria’s economic diplomacy, presenting the country as a credible investment destination and a dependable hub for industrial activity across Africa. It tells investors that Nigeria is no longer a market of promises, but one of performance — capable of translating ambition into reality.”
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