By Obinna Uballa
Africa’s dependence on imported hydrocarbons is costing the continent more than $120 billion every year, a situation Nigeria is determined to reverse by positioning itself as a major refining and energy hub for the region, the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, has said.
Lokpobiri spoke on Tuesday at the opening of the 2026 Nigeria International Energy Summit (NIES) in Abuja, where President Bola Tinubu was represented by Vice-President Kashim Shettima at the Presidential Banquet Hall, Aso Villa.
The minister said the huge import bill underscored the urgent need for African nations to invest aggressively in local refining, upstream development and energy infrastructure, while calling for stronger backing for the African Energy Bank headquartered in Nigeria to mobilise funding for the continent’s energy needs.
He noted that forecasts by the International Energy Agency (IEA) and the Organisation of Petroleum Exporting Countries (OPEC) indicate that fossil fuels will remain central to the global energy mix for decades, making it imperative for Africa to take advantage of its vast hydrocarbon resources.
Against this backdrop, Lokpobiri disclosed that Nigeria approved 28 new Field Development Plans (FDPs) worth $18.2 billion in 2025, unlocking about 1.4 billion barrels of crude oil reserves.
He described the approvals as part of a sweeping transformation of the petroleum sector under the Tinubu administration, which he said had reversed years of declining output, stalled investments and capital flight.
“Between 2024 and 2025, four of the seven major Final Investment Decisions announced across Africa were in Nigeria. This is a direct result of policy clarity, consistent governance and deliberate leadership,” he said.
Lokpobiri said Nigeria’s improved investment climate now allows the free movement of capital, in line with global best practices, enabling companies to invest and divest without bureaucratic bottlenecks.
He highlighted the recent divestment of onshore and shallow water assets by International Oil Companies (IOCs) to indigenous firms, including transactions involving Shell and Renaissance, ExxonMobil and Seplat, and Eni and Oando.
According to him, the transfers have already added about 200,000 barrels of oil per day to Nigeria’s production capacity.
“These were divestments that had been stalled for years. With decisive leadership, we concluded them in record time and the gains are already visible,” he said.
On the downstream front, the minister said the removal of fuel subsidies had stabilised the market and improved product availability nationwide. He commended indigenous investors such as Dangote and BUA for their expanding roles in refining and midstream infrastructure.
Lokpobiri added that licensing processes had been liberalised to promote transparency and fairness, while Nigeria’s West African Reference Market initiative was designed to cement its role as a refining hub for the Gulf of Guinea.
He said the full implementation of the Petroleum Industry Act (PIA) had created a stable fiscal and regulatory environment, strengthened host community protections and ensured predictable contractual terms for investors.
The Upstream Petroleum Operations (Cost Efficiency Incentives) Order 2025, he added, had further reduced production costs through targeted tax credits.
Lokpobiri pointed to the success of Project One Million Barrels, launched in October 2024, which he said had raised Nigeria’s crude output to between 1.7 and 1.83 million barrels per day – an increase of about 300,000 barrels within a year.
He also disclosed that active drilling rigs had jumped from 14 in 2023 to more than 60, signalling renewed investor activity.
Citing major Final Investment Decisions, he listed Shell’s $5 billion Bonga North project, TotalEnergies’ $550 million Ubeta project, Shell’s $2 billion HI project and Chevron’s $1.8 billion Panther project, while noting that Shell had announced plans for an additional $20 billion FID.
“The story of Nigeria’s petroleum sector is being rewritten,” Lokpobiri said, urging global investors to see Nigeria as a long-term partner in driving Africa’s energy-led growth.
