Nigeria’s Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, has called for massive investments in the oil and gas sector to reduce Africa’s spending on hydrocarbon imports.
The minister made the call during his keynote speech at the opening ceremony of the 2025 Oil Trading and Logistics (OTL) Africa Downstream Energy Week in Lagos on Monday, October 27.
He stated that with a population of over 1.5 billion people, there is enough market in Africa. He, however, said data released in 2024 revealed that the continent generally spends not less than $120 billion on hydrocarbon imports annually.
Lokpobiri, who represented President Bola Tinubu at the event, said Africa is a key producer and consumer of hydrocarbons, but is not getting the kind of value it deserves because of challenges associated with a lack of refining and distribution infrastructure. According to him, the majority of the continent’s energy trade value is lost to import costs due to poor refining capacity and distribution infrastructure.
He said the entire continent is waiting for Nigeria, adding that the target is to take a significant chunk of that market and reduce the annual hydrocarbon import bill.
READ ALSO: Dangote Seeks $5bn Loan from Afreximbank for Refinery Expansion
“Our target is to see how we can retain a portion of that cost,” Lokpobiri stated, adding that the situation informed his decision to collaborate with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) earlier in the year to launch the West Africa Gas Market, to make Nigeria a major refining and distribution hub in Africa.
Speaking on the global energy transition agenda, the minister said oil and gas still constitute about 60 per cent of global energy demands, stressing the need for a change of narrative to reflect the current realities, especially in developing economies, and encourage exploration of the abundant resources to get the money needed to finance renewable energy projects.
While criticising the hypocrisy of industrialised nations setting the global energy transition agenda, Lokpobiri pointed out that Africa contributes only about three percent of global emissions, and stressed that the continent still depends largely on oil and gas for foreign exchange earnings and energy generation.
He also advised that the narrative should change from energy transition to energy security.
The petroleum minister said the International Energy Agency (IEA) disclosed that the world needs to invest about $450 billion annually in oil and gas development to avoid an energy crisis by 2050.
This, he said, “shows a major shift from the previous position that called for the end of fossil fuel investments.”
The minister emphasised that the IEA, which had previously predicted a gradual transition from fossil fuels in favour of renewables, has reviewed its forecast given the reality of rising global energy consumption, population growth, and the need for supply stability.
“The world population is expected to grow by another two billion people by 2050, and with that, energy demand will rise significantly. Even with the best of renewable energy technologies, hydrocarbons will remain indispensable to global energy security,” the minister stated.
Buttressing his point about lack of commitment to the climate agenda, Lokpobiri observed that, despite global pledges for climate financing, only a small portion of the pledged funds had been allocated to developing nations. He accused Western nations of employing “climate finance” as a political tool while failing to provide meaningful support for Africa’s energy transition.
“Billions of dollars have been pledged, yet nothing tangible has been given,” he said, adding that Africa must evolve home-grown solutions and mobilize financing for its energy development.
He emphasised that President Tinubu had, from the beginning of his administration, set out to create policies that encourage local production of petroleum products, investment in the downstream value chain, robust trade and healthy competition, making products available and affordable.
READ ALSO: Oil Prices Steady as Hopes for U.S.–China Trade Deal Offset Weak Demand Fears
He commended efforts by private investors such as Dangote Refinery, especially the recent move to expand refining capacity to 1.4 million barrels per day from the current 650,000. This, in addition to activities of modular refinery operators, he said, would help to ensure supply stability in Nigeria and other parts of West Africa.
He urged industry leaders to explore opportunities in the oil and gas sector and attract investments.
He called for robust investment in the midstream and downstream, stressing that the government is constantly refining policies to create a conducive environment in the oil and gas industry.
The minister commended OTL Africa for sustaining the programme for the past 19 years, adding that it is a crucial platform for creating policy and investment debate in Africa’s energy sector.
.
Victor Ezeja is a passionate journalist, scholar and analyst of socioeconomic issues in Nigeria and Africa. He is skilled in energy reporting, business and economy, and holds a master's degree in mass communication.
