Dangote refinery not enough, Nigeria needs more investors — Minister

The Federal Government in Nigeria has emphasized that the Dangote Refinery is insufficient to meet the growing demand for refined petroleum products across Africa. Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, stated during the second West Africa Refined Fuel Market Conference in Abuja that Nigeria needs to attract more investments into its refining, midstream, and downstream sectors to become a major hub for refined petroleum products in the continent.

The conference aimed to advance plans for a transparent regional pricing system for these products. Lokpobiri highlighted that while the Dangote Refinery's capacity had increased to 1.4 million barrels, it was still not sufficient to cater to the entire African market and world demand. He urged investors with capital to seize the opportunity presented by Nigeria's expanding energy market, noting that the country's strategic location offered an advantage as it is not directly dependent on the Strait of Hormuz for supply routes.

The minister called on stakeholders to move beyond exporting raw commodities and importing processed products, emphasizing the potential for Nigeria to change the pattern by leveraging its growing refining capacity. The conference, held jointly by the Nigerian Midstream and Downstream Petroleum Regulatory Authority, S&P Global Commodity Insights, and the West Africa Regulators Forum, aimed to foster a transparent market for regional price benchmarks and address the challenges of fragmented markets and inadequate infrastructure in West Africa.