FG Launches Regional Fuel Market, Promises Assistance To Local Refining Industry

The Federal Government is dedicated to making sure that each barrel of crude oil produced in Nigeria adds genuine value to the country’s economy both domestically and internationally, according to Heineken Lokpobiri, Minister of State for Petroleum Resources (Oil).

The minister said the government was giving indigenous refining capacity top priority as part of its push for energy self-sufficiency and sustainable economic growth during his remarks at the 2025 CORAN Summit, which was held in Lagos on Tuesday.

Lokpobiri, accompanied by his Technical Advisor Ndah Adaba, emphasized that enhancing domestic refining and guaranteeing energy security were essential components of Nigeria’s long-term development objectives.

Engineers, investors, policymakers, and energy professionals from all over the continent gathered at the conference, which had as its topic “Refinery Key to Energy Security in Africa,” to talk about the continent’s progress toward refining independence.

According to Lokpobiri, the Federal Government was making sure that all local refineries with licenses had steady access to feedstock for their operations through the Domestic Crude Oil Supply Obligation (DSCO).

“By effectively implementing the Domestic Crude Oil Supply Obligation, the government is facilitating crude oil supply to domestic refiners beyond licensing,” he stated.

He pointed out that the “Naira for Crude” campaign, which was started to stabilize the market, will remain essential in lowering the cost of producing fuel, lowering exposure to fluctuations in currency rates, and assisting domestic refinery operations.

“Without the ability to refine its own crude, no country can claim energy independence,” the minister said.

Highlighting recent changes, Lokpobiri stated that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) had been used by the government to streamline the refinery licensing procedure.

He claims that in order to remove bureaucratic obstacles and attract reliable investors, the procedure—which includes the Licence to Establish, Licence to Construct, and Licence to Operate—has been simplified.

According to Lokpobiri, “this administration supports real investors who can deliver results, not those who thrive on red tape.”

“Success Stories: Indigenous Refineries”
Lokpobiri cited the Waltersmith Petroman Refinery, Aradel Holdings, and the Dangote Refinery & Petrochemical Complex as indigenous success stories propelling Nigeria’s refining revival.

We have witnessed indigenous success stories today, such Aradel Holdings, Waltersmith Petroman Refinery, and Dangote Refinery, among others. According to him, these show that Nigerians have the ability and desire to refine our oil locally.

He claims that these initiatives “symbolize confidence in government policy direction” and are consistent with President Bola Tinubu’s Renewed Hope Agenda, which highlights domestic refining as a major factor in the development of jobs, energy independence, and industrial resurgence.

Nigeria Opens Fuel Market in West Africa
The minister disclosed that the Federal Government has established the West African Fuel Reference Market, an initiative designed to establish Nigeria as the refining and petroleum distribution center for West Africa, in an effort to improve regional collaboration.

Nigeria would be able to meet its own needs and establish itself as a dependable supplier to its neighbors with more domestic refining capacity, according to Lokpobiri.

According to him, the project supports the African Continental Free commerce Area (AfCFTA) framework, which aims to increase intra-African commerce and lessen reliance on foreign refineries, as well as the African Union’s energy integration ambitions.

In the future, Lokpobiri stated that the Federal Government would increase fiscal incentives to draw in both domestic and foreign investment while giving feedstock security top priority for all licensed refiners.

He went on to say that in order to prevent pipeline vandalism, fight crude oil theft, and promote goodwill with host communities, cooperation between the Ministry of Petroleum Resources, NMDPRA, NUPRC, and security agencies was being improved.

“Our refineries and the organizations that support them are the first step towards ensuring Africa’s energy security,” Lokpobiri stated.

In order for the continent to become self-sufficient, he called on African countries to strengthen their collaboration in areas like logistics, product trade, and shared energy infrastructure.

Meanwhile, as the downstream market is being reshaped by government reforms and growing local refining capacity, Nigeria’s imports of Premium Motor Spirit (petrol) have fallen to their lowest level in eight years.

According to Kpler data, Nigeria got 116,000 barrels of gasoline per day (18.44 million liters) in September, compared to 154,000 barrels per day (24.49 million liters) in August. This was the lowest amount since 2017. This information was reported by Argus Media.

Policy changes, increased domestic production, and continuous maintenance at the 650,000 barrels per day Dangote Refinery, which has temporarily reduced operations, were cited in the report as the reasons for the fall.

Analysts say the ongoing decline in imports indicates growing confidence in domestic refining and a gradual shift toward energy independence, despite a recent labor dispute between the refinery’s management and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN).