FG BACKS DANGOTE REFINERY’S EXPANSION TO 1.4 MILLION BARRELS PER DAY

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By Aishat Momoh. O.

The Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, has pledged the federal government’s full support for the Dangote Refinery’s plan to expand production capacity from 650,000 barrels per day (bpd) to 1.4 million bpd within the next three years.

Speaking at the OTL Africa Downstream Energy Week in Lagos on Sunday, Lokpobiri described the planned expansion as a major milestone that would significantly boost Nigeria’s energy security and meet growing demand across Africa.

“The Dangote Refinery’s expansion to 1.4 million barrels per day is part of the effort to serve West Africa and the entire continent,” he said. “The Federal Government will fully support Dangote to achieve this. That is one of the reasons petrol subsidy was removed. With subsidy in place, the private sector cannot grow.”

He noted that deregulation and privatization were critical to sustaining growth in the downstream and midstream oil sectors, explaining that the removal of fuel subsidy—previously costing over ₦2 trillion annually had freed up resources for more productive investments.

“The truth is, the subsidy regime ended up subsidizing consumption across the West African subregion, not just Nigeria,” he added.

Also speaking, Otunba Oyebanji, Chairman of the Advisory Board of OTL Africa Downstream Energy Week, said Africa stood at a defining moment in its energy evolution.

“Africa’s rising population, industrialization, and urban growth are driving energy demand at unprecedented rates,” he said. “Nigeria, as Africa’s largest energy producer and consumer, occupies a central position in this transformation.”

He stressed that policy consistency, institutional stability, and innovation were vital to deepening recent gains achieved through deregulation and infrastructure development.

In a related development, the Nigerian National Petroleum Company Limited (NNPC Ltd) reiterated its commitment to revamping and expanding downstream infrastructure nationwide to enhance efficiency and collaboration in the sector.

The Group Chief Executive Officer, Engr. Bayo Ojulari, said the company was deploying new assets across the oil and gas value chain while rehabilitating existing facilities to strengthen product storage and distribution networks.

He added that the Petroleum Industry Act (PIA) had created a transparent regulatory framework that encourages new investments, including in Liquefied Petroleum Gas (LPG), Compressed Natural Gas (CNG), and mini-LNG projects.

The Society of Energy Editors (SEE) hailed the Dangote Group’s expansion plan as a bold step toward energy self-sufficiency, describing it as a “monumental leap” for Nigeria’s industrial development.

“However, ambition must be grounded in pragmatism,” the group cautioned, highlighting concerns over crude oil supply as the refinery scales up operations.

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“The state of the NNPCL refineries is a national tragedy that demands urgent, transparent action. For Nigeria to truly achieve energy self-sufficiency and become a net exporter, both narratives must converge toward success,” SEE said.

Energy analyst Kunle Odusola-Stevenson described the Dangote Refinery as “a public relations asset of immense strategic value,” arguing that it has redefined Nigeria’s global reputation.

“It refines crude oil, yes, but more profoundly, it refines Nigeria’s global image,” he said. “This single achievement enhances Nigeria’s economic diplomacy, presenting the country as a credible investment destination and a dependable hub for industrial activity across Africa.

“It tells investors that Nigeria is no longer a market of promises, but one of performance capable of translating ambition into reality.”