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…Backs Dangote to capture 20% of market
By Adewale Sanyaolu
The federal government has lamented Africa’s estimated $120 billion annual expenditure on importation of refined petroleum products, describing it as a huge drain on the continent’s economy and a missed opportunity for industrial growth.
Minister of State for Petroleum Resources (Oil), Mr. Heineken Lokpobiri, stated this during his ministerial address at the Nigerian International Energy Summit (NIES) in Abuja yesterday.
Lokpobiri said the expenditure, largely driven by refined petroleum products and hydrocarbon-related services import, represents not just a financial loss but a setback to Africa’s economic transformation.
According to him, the development explains why the federal government is supporting the Dangote Refinery to capture about 20 per cent of the African market, in a bid to retain value within the continent.
“The core idea is simple: if Africa can retain a proportion of that spending through local value addition, infrastructure development and industrial participation, the economic impact would be transformative,” he said.
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He stressed the need for continental support for the African Energy Bank (AEB), headquartered in Nigeria, warning that Africa’s energy challenges would worsen if adequate resources are not mobilised internally.
Lokpobiri noted that global energy outlooks by the International Energy Agency (IEA) and OPEC indicate that fossil fuels will remain dominant for the foreseeable future, as global conversations shift from energy transition to energy mix.
He said Nigeria’s implementation of the Petroleum Industry Act (PIA) has improved investor confidence by providing fiscal stability, clearer licensing, stronger regulation and predictable contract terms.
The minister disclosed that crude oil production rose to between 1.7 million and 1.83 million barrels per day following the launch of Project One Million Barrels in October 2024, while the number of active rigs increased from 14 in 2023 to over 60 currently.
He added that renewed investor confidence has resulted in major Final Investment Decisions, including Shell’s $5 billion Bonga North project and TotalEnergies’ $550 million Ubeta project, among others.
“These are not accidents. They are the result of policy clarity, steady reforms and improved governance. Nigeria is once again becoming a magnet for serious investment,” Lokpobiri said.
