The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, has reiterated the Nigerian government's unwavering commitment to promoting the refining of petroleum products domestically. This pledge comes in response to recent public speculation regarding the future of Nigeria's refineries and the operational direction of the Nigerian National Petroleum Company Limited (NNPCL).
In a detailed statement issued on Tuesday, Lokpobiri clarified misinterpretations surrounding comments made by Engr. Kamoru Busari, Director of Upstream in the Ministry of Petroleum Resources, who spoke on his behalf at a recent conference in Lagos. The Minister categorically denied any directive instructing NNPCL to cease its refinery operations, calling such claims misleading and inconsistent with both his views and the policy stance of the federal government.
“The assertion that I directed NNPCL to stop running its refineries and focus solely on equity participation in other refineries is false. This is not reflective of my position as Minister, nor does it align with the vision of the Federal Government,” the statement read.
Lokpobiri explained that NNPCL, as a corporate entity governed by the Companies and Allied Matters Act (CAMA), operates autonomously, with its own board of directors and management team overseeing its operations. "The Ministry of Petroleum Resources does not control or manage NNPCL’s day-to-day activities, as it functions independently, similar to other corporate bodies," he emphasized.
He highlighted that the government’s role in the oil and gas sector is primarily regulatory and strategic, aimed at fostering an environment that allows companies, including NNPCL, to thrive and innovate. The government provides broad policy direction and regulatory oversight but refrains from direct interference in corporate decisions.
“Our focus remains on creating a competitive and fully deregulated oil and gas sector, where companies can operate independently and efficiently,” he noted. He added that this approach aligns with global best practices, where national oil companies act as independent commercial entities, driven by profitability, transparency, and international standards.
Lokpobiri reaffirmed the government’s broader vision of establishing Nigeria as a hub for refining crude oil domestically, which not only reduces the country's dependency on foreign refineries but also supports job creation, increases domestic energy security, and strengthens the nation’s overall economic stability. He stressed that promoting in-country refining remains a core priority, with initiatives already underway to encourage public and private investment in the sector.
"We are fully committed to ensuring that NNPCL continues to grow as an independent entity, focused on refining petroleum products locally, while also investing strategically in refining capacity abroad. This dual strategy allows us to meet both domestic energy demands and participate competitively in the global oil and gas market," he explained.
Lokpobiri also underscored the importance of collaboration between government entities and private sector operators to create a self-sustaining and efficient oil industry in Nigeria. He noted that ongoing efforts are being made to rehabilitate and modernize existing refineries, with the long-term goal of achieving self-sufficiency in petroleum product refining.
“While we continue to provide strategic guidance, our priority is to create an environment where NNPCL and other companies can operate efficiently without undue interference. Our goal is to see these refineries not only functioning optimally but becoming exemplars of efficiency, transparency, and global competitiveness," he concluded.
In reaffirming the government’s commitment, Lokpobiri encouraged all stakeholders in the oil and gas industry to work towards creating a robust and diversified refining capacity in Nigeria, adding that such an effort would significantly enhance the country’s economic resilience and reduce its reliance on imported petroleum products.
He also assured that the Ministry of Petroleum Resources would continue to work closely with NNPCL and other stakeholders to ensure the ongoing reforms in the oil and gas sector remain on track, driving both national development and broader energy security for Nigeria.
