The Federal Government of Nigeria, through the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, has announced its commitment to supporting indigenous refiners by ensuring a reliable supply of crude oil and reducing bureaucratic hurdles. The announcement was made during the 2025 Crude Oil Refinery Owners Association of Nigeria (CORAN) Summit in Lagos.
According to Lokpobiri, this strategic move is a key part of President Bola Tinubu’s “Renewed Hope Agenda” and is aimed at achieving energy self-sufficiency for Nigeria. He highlighted that improving local refining capacity is central to the country’s development goals, including job creation and economic revitalization.1
Key points of the government’s support:
- Domestic Crude Oil Supply Obligation (DSCO): The government affirmed its commitment to effectively implementing the DSCO, a provision under the Petroleum Industry Act (PIA) that mandates oil-producing companies to allocate a portion of their crude oil for domestic refining. This is intended to ensure a steady supply of feedstock for local refineries, reduce dependence on imported refined products, and enhance national energy security.2
- “Naira for Crude” Sales: Lokpobiri stated that the “Naira for Crude” sales agreement will continue to be a vital policy to help reduce the cost of fuel production, mitigate exchange rate volatility, and support indigenous refining capacity. This policy allows local refiners to purchase crude in either naira or dollars, or a combination of both, easing the financial burden on local companies.
- Reduced Bureaucracy: The government, through the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), has streamlined the licensing process to remove bureaucratic bottlenecks.
- Fiscal Incentives and Feedstock Security: The minister pledged to deepen fiscal incentives to attract further investment and to ensure feedstock security for all licensed refiners.
Lokpobiri praised the indigenous success stories in the refining sector, such as Dangote Refinery, Waltersmith Petroman Refinery, and Aradel Holdings, stating that these projects demonstrate Nigeria’s capacity and will to refine its own crude.3 He also mentioned the launch of the West African Fuel Reference Market, a government initiative to position Nigeria as a regional hub for petroleum product supply, thereby reducing the region’s dependence on imports.4
