President Bola Tinubu has reaffirmed Nigeria’s commitment to retaining a greater share of value from Africa’s $120 billion investment in hydrocarbon resources through aggressive expansion of refining and distribution networks. The initiative aims to establish a sustainable market for the continent’s vast energy investments.
Speaking in Lagos on Monday while declaring open the 19th Oil Trading and Logistics (OTL) Africa Downstream Energy Week, themed “Energy Sustainability: Growth Beyond Boundaries and Competition,” Tinubu stressed the need for Africa to maximize returns on its energy assets.
Represented by the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, Tinubu lamented that despite Africa holding more than $4 trillion in investable funds, access to capital remains limited. He noted that, in 2024, African countries invested roughly $120 billion in hydrocarbon resources but still lacked sufficient refining capacity and distribution networks to capture full value.
“The target of the Nigerian government is to see how we can retain a large proportion of this capital within our borders. That is why Nigeria is planning to launch the West African Petroleum Market. The idea is to make Nigeria the refinery and distribution hub for the entire continent,” Tinubu said.
He emphasized that “the whole of Africa is waiting for Nigeria to take the lead as a major supplier and distributor of petroleum products,” noting that most imported petroleum products in Nigeria eventually circulate across West Africa.
The president pledged his administration’s full support for the Dangote Refinery’s expansion to 1.4 million barrels per day (bpd) from its current 650,000 bpd capacity, saying it aligns with the government’s goal of making Nigeria the energy hub of Africa. He also cited the removal of petrol subsidy as a strategic decision to promote private sector growth in the downstream sector.
Tinubu announced that the International Energy Agency (IEA) had revised its stance on global energy investments, now acknowledging the need for sustained upstream funding to prevent future crises. “The 2025 IEA Report clearly showed that the world needed to invest about $540 billion annually in upstream oil and gas to avoid a global energy crisis by 2050,” he stated.
He added that combined investments across upstream, midstream, and downstream sectors must exceed $700 billion annually to ensure stability. “That’s good news for Nigeria,” he said, explaining that proceeds from oil and gas should also finance renewable energy initiatives.
Highlighting Africa’s vast market of 1.5 billion people, Tinubu said the continent imports over 120 million litres of petroleum products daily, underscoring the urgent need for domestic refining capacity.
He warned that “global warming will not stop even if Africa shuts down its three percent contribution” to emissions, while industrialized nations responsible for 97 percent continue polluting. “It will be disastrous for Africa to abandon its hydrocarbon development,” he cautioned.
Tinubu urged African leaders to speak “boldly” with a unified voice against “unrealistic promoters of net zero,” and to develop indigenous financing solutions rather than relying on unfulfilled global pledges for climate funding.
He concluded, “Even if the West decides not to invest in our hydrocarbons, Africa must continue to invest in its energy future… We must take our destiny into our own hands and expand investment opportunities across the oil and gas value chain — upstream, midstream, and downstream.”
