Adegbulugbe: Why we built Nigeria’s first $400m indigenous oil terminal in Rivers

Chairman, Green Energy International Limited (GEIL), Professor Anthony Adegbulugbe, has declared that the newly completed Otakikpo Onshore Crude Oil Terminal in Rivers State will redefine Nigeria’s oil and gas industry and chart a new course for indigenous participation in the sector.

Valued at over $400 million in its initial phase, the Otakikpo Terminal is the first indigenous crude oil terminal ever built in Nigeria and the first to be constructed in more than 50 years since multinational oil giants established the country’s five existing terminals.

“This is a project whose time has come. Right now, we have an ageing network of export infrastructure that has been a limiting factor to the production of oil in Nigeria. What we have done is to put in place a modular facility with a 750,000-barrel storage capacity that can be expanded to three million barrels. And we are working with stakeholders to ensure it delivers on its promise”, he said.

The Otakikpo Terminal, he explained, was conceived as a solution to some of the deepest-rooted problems in Nigeria’s oil sector, problems that have long frustrated both small and mid-sized exploration and production companies. For years, operators with limited reserves, fields stranded far from pipelines, or offshore assets too costly to evacuate, have struggled to find a way into the export market. Theft, insecurity, and high infrastructure costs compounded their challenges. GEIL’s new terminal, Adegbulugbe argued, provides the answers.

He outlined four categories of producers who now stand to benefit. Small reserve holders within trucking distance can move 1,000 to 1,500 barrels daily to the facility using accessible roads. Companies with fields in riverine areas can barge crude to a strategic “kilometre 6” link, where a bi-directional pipeline connects directly to the terminal. Offshore producers up to 23 kilometres out can pump through another subsea connection. Even larger firms within 40 kilometres, who might otherwise lose up to 20 percent of their output to theft, can now evacuate securely through Otakikpo.

“This is the kind of option we are bringing to the table,” Adegbulugbe said. “You are sure that if you bring your one hundred barrels to our terminal, you can get paid for 100 barrels.”

But beyond convenience, GEIL has also built resilience into its design. Every pipeline connected to the terminal, Adegbulugbe disclosed, is a three-phase line—capable of carrying oil, gas, and water simultaneously. This innovation is not just efficient but also strategic. With gas in the system, the risk of vandalism is dramatically reduced, offering operators a new layer of security. “With gas in that pipeline, it is relatively safe from pipeline vandalisation,” he explained.

The scale of the achievement is striking. The Otakikpo Terminal begins with a storage capacity of 750,000 barrels but is expandable to three million. It can pump 360,000 barrels per day into export tankers, instantly positioning it among the country’s most significant crude oil facilities. And, remarkably, it was completed ahead of schedule—delivered in under two years.

Adegbulugbe did not hide the pride he feels in achieving what many thought impossible. For decades, Nigeria’s oil export story has been written by foreign majors. Now, GEIL has inscribed an indigenous chapter. “This is the first time in Nigeria that such a terminal has been put together by an indigenous operator,” he said. “It is about changing the narrative and showing that we can take charge of our resources and build the infrastructure needed to optimize them.”

The timing of the project could not be more critical. Until March 2025, Nigeria’s five major terminals—built over 50 years ago—still accounted for about half of the country’s crude exports. Ageing, overstretched, and increasingly vulnerable to sabotage, they have become both bottlenecks and risks to production. By providing an alternative, the Otakikpo Terminal relieves pressure on the system while opening new opportunities for operators previously shut out.

The potential ripple effects are vast. The facility, strategically located near Ogoni and Opobo, is positioned to unlock over 40 stranded fields, holding an estimated 3 billion barrels of oil equivalent.

For communities like Ogoni, which have watched their resources lie untapped for decades amid controversy and neglect, the terminal represents a bridge to renewal. For government, it provides a platform to achieve President Bola Tinubu’s promise of revitalizing long-abandoned fields while boosting revenues.

“Our vision goes beyond just building infrastructure,” Adegbulugbe stressed. “It is about creating a sustainable framework that encourages growth, protects investors, and enhances Nigeria’s competitiveness in global markets.”

With a projected full-scale investment of $1.3 billion, the Otakikpo project is also a bet on the future of Nigeria’s energy economy. It opens space for smaller producers to scale, encourages new entrants, and reduces the stranglehold of theft and sabotage on the country’s oil logistics. It also sends a message to the global market: Nigerian companies are not only capable of operating fields but of building the world-class infrastructure to support them.

As analysts have noted, the terminal has implications that stretch beyond Nigeria. It could serve as a model for other African producers wrestling with the dilemma of resource dependence but lacking indigenous control of infrastructure. It shows that with vision, capital, and persistence, local players can reframe the story.

President Tinubu is expected to inaugurate the facility in due course, a move that will underline its national significance. But even before that formal ceremony, the Otakikpo Terminal has already shifted the ground beneath Nigeria’s oil sector.

For Adegbulugbe, though, it is not only about barrels, pipelines, or pumping capacity. It is about a vision fulfilled against doubt and adversity. “This terminal is about hope,” he said with conviction. “Hope that Nigeria can take charge of its oil destiny, hope that smaller producers can find affordable and secure ways to export, and hope that our country’s energy sector can truly begin to serve our people.”