Africa spends more than $120 billion annually importing hydrocarbons due to inadequate local refining capacity, the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, has said, warning that the trend continues to drain the continent’s economy.
Lokpobiri spoke on Tuesday at the opening of the 2026 Nigeria International Energy Summit (NIES) in Abuja, declared open by President Bola Tinubu and represented by Vice-President Kashim Shettima at the Presidential Banquet Hall, Aso Villa.
He said the development underscored the need for African countries to deepen investments in upstream production, refining and energy infrastructure, while urging support for the African Energy Bank headquartered in Nigeria to mobilise funding for Africa’s energy future.
According to him, projections by the International Energy Agency and OPEC indicate that fossil fuels will remain dominant globally for years, making it imperative for Africa to fully harness its vast hydrocarbon resources.
Lokpobiri said Nigeria was already taking steps in that direction, disclosing that the country approved 28 new Field Development Plans valued at $18.2 billion in 2025, unlocking an estimated 1.4 billion barrels of crude oil reserves.
He described the approvals as evidence of a turnaround in the petroleum sector under the Tinubu administration, which he said had reversed years of declining production and investor apathy.
“Between 2024 and 2025, four of the seven major Final Investment Decisions across Africa were in Nigeria due to policy clarity and consistent governance,” he said.
The minister noted that recent divestments of onshore and shallow water assets by International Oil Companies to indigenous operators had already added about 200,000 barrels per day to national output.
“These divestments, which were stalled for years, have now been concluded, leading to immediate production gains,” he said.
He added that the removal of fuel subsidies had stabilised the downstream market and improved product availability, while indigenous investors such as Dangote and BUA were expanding refining and midstream capacity.
Lokpobiri said licensing processes had been liberalised to ensure transparency and fairness, while the launch of the West African Reference Market was aimed at positioning Nigeria as a regional refining hub.
He also highlighted the impact of the Petroleum Industry Act and the Upstream Petroleum Operations (Cost Efficiency Incentives) Order 2025 in improving fiscal stability and reducing production costs.
According to him, Project One Million Barrels, launched in October 2024, has raised Nigeria’s crude oil output to between 1.7 and 1.83 million barrels per day, representing an increase of about 300,000 barrels within a year.
He said active drilling rigs had increased from 14 in 2023 to over 60, reflecting renewed investor confidence.
Lokpobiri cited major projects such as Shell’s $5 billion Bonga North, TotalEnergies’ $550 million Ubeta, Shell’s $2 billion HI project and Chevron’s $1.8 billion Panther project, adding that Shell had announced plans for a further $20 billion Final Investment Decision.
“The story of Nigeria’s petroleum sector is being rewritten,” he said, urging global investors to partner with Nigeria in driving Africa’s energy growth.
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