FG Unveils West African Fuel Market, Vows Full Support For Local Refiners

The Federal Government has reiterated its commitment to boosting Nigeria’s domestic refining capacity and ensuring that every barrel of crude oil contributes tangible value to the national economy.

According to Ireporter Online, the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, made this known during the 2025 CORAN Summit held in Lagos on Tuesday. Represented by his Technical Adviser, Ndah Adaba, Lokpobiri stated that the government was prioritising indigenous refining development as part of its strategy to achieve energy self-sufficiency and sustainable economic growth.

He explained that the administration was implementing the Domestic Crude Oil Supply Obligation (DSCO) to ensure consistent feedstock supply to licensed local refineries. “Beyond licensing, the government is facilitating crude oil supply to domestic refiners through effective implementation of the DSCO,” he said.

Lokpobiri also noted that the “Naira for Crude” initiative would continue to stabilise production costs, reduce exposure to foreign exchange volatility, and enhance local refining operations. “No nation can claim energy independence without the ability to refine its own crude,” he emphasised.

Highlighting recent reforms, the minister disclosed that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) had streamlined the refinery licensing process to remove bureaucratic bottlenecks and attract credible investors. “This administration supports genuine investors who can deliver results, not those who thrive on red tape,” he stated.

Lokpobiri cited the Dangote Refinery, Waltersmith Petroman Refinery, and Aradel Holdings as success stories reflecting Nigeria’s capacity to refine locally. He said these projects exemplify confidence in government policy and align with President Bola Tinubu’s Renewed Hope Agenda, which promotes domestic refining as a key pillar for job creation and industrial revival.

In a major regional development, Lokpobiri announced the launch of the West African Fuel Reference Market — an initiative designed to position Nigeria as the petroleum refining and distribution hub for the sub-region. “With increased domestic refining capacity, Nigeria will not only meet internal demands but also become a reliable supplier to neighbouring countries,” he said.

The minister added that the initiative aligns with the African Union’s energy integration goals and the African Continental Free Trade Area (AfCFTA) agenda to deepen intra-African trade and reduce reliance on foreign refineries.

Lokpobiri further revealed that the government would prioritise feedstock security and introduce expanded fiscal incentives to attract local and foreign investment. He said collaboration among regulatory agencies and security bodies was being strengthened to combat crude oil theft, pipeline vandalism, and community unrest.

“The path to Africa’s energy security runs through the gates of our refineries and the institutions that support them,” he remarked, urging African countries to enhance cooperation in logistics, product exchange, and energy infrastructure.

Meanwhile, data from Argus Media indicated that Nigeria’s petrol importation has dropped to its lowest level in eight years. The report showed that petrol shipments declined to 116,000 barrels per day (18.44 million litres) in September from 154,000 barrels per day (24.49 million litres) in August — the lowest since 2017, according to Kpler data.

The decline, analysts noted, stems from government reforms, improved local production, and temporary maintenance at the 650,000 barrels-per-day Dangote Refinery. Despite an ongoing dispute between the refinery’s management and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), experts view the trend as a sign of growing confidence in Nigeria’s refining capacity and a steady march toward energy independence.