Government Pledges Full Support for Dangote Refinery Expansion

The Federal Government has thrown its full weight behind the Dangote Refinery’s plan to expand production capacity from 650,000 to 1.4 million barrels per day, describing the initiative as a transformative project for Nigeria and the African continent.

Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, announced the government’s support during the opening of the 19th Africa Downstream Energy Week in Lagos. He commended the Dangote Group for its bold step toward expanding output, noting that the move would significantly strengthen Nigeria’s position in the global oil market.

Lokpobiri said the administration was committed to working closely with the refinery to ensure the success of the expansion. According to him, the increased refining capacity would not only serve Nigeria’s domestic demand but also contribute to energy stability across Africa. He described the project as a “game-changer” that aligns with the government’s efforts to promote private investment in the energy sector.

The minister recalled that the decision by President Bola Tinubu to remove fuel subsidy and liberalise the downstream sector was aimed at creating an enabling environment for investors. He explained that subsidies had constrained private sector growth, while deregulation had led to greater competition, improved product availability, and market stability.

Lokpobiri noted that although the policy was initially misunderstood, its benefits are now evident in the improved participation of private players in the sector. He said that the government’s focus was to ensure long-term sustainability in the petroleum industry through a transparent, competitive, and investor-friendly environment.

He also reaffirmed the government’s commitment to strengthening investments in oil and gas, stressing that hydrocarbons would continue to play a central role in the global energy mix. He pointed out that even as nations pursue cleaner energy, the world still relies heavily on oil and gas, and investment in these areas remains critical for economic growth and stability.

Quoting global energy projections, the minister said that an estimated $540 billion is required annually to maintain and expand oil and gas infrastructure worldwide. He added that Africa, with its growing population and industrial needs, must continue to prioritise exploration, production, and refining to achieve self-sufficiency and economic resilience.

Lokpobiri further noted that Nigeria’s downstream sector is now witnessing increased investor confidence following subsidy removal. He said that the policy has encouraged private investment, reduced pressure on government finances, and fostered a more efficient and competitive market.

The Dangote Group recently confirmed plans to raise its refinery’s production capacity to 1.4 million barrels per day, which would make it the largest refinery in the world once completed. Aliko Dangote, President of the Dangote Group, said the expansion reflects the company’s belief in Nigeria’s economic potential and the future of Africa’s energy sector.