Africa spends over $120bn annually on hydrocarbon imports – Lokpobiri

The Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, has revealed that African countries collectively spend over $120 billion every year importing hydrocarbons, a development he described as a major drain on the continent’s economy and a clear indication of the urgent need to deepen local refining and energy investments.

Lokpobiri made this disclosure on Tuesday at the official opening of the 2026 Nigeria International Energy Summit (NIES) in Abuja. The event was declared open by President Bola Tinubu, who was represented by Vice-President Kashim Shettima at the Presidential Banquet Hall, Aso Villa.

Speaking at the summit, the minister linked Africa’s heavy import bill to inadequate refining capacity across the continent and called for stronger support for the African Energy Bank, headquartered in Nigeria, to mobilise capital for Africa-focused energy development.

He said Africa’s energy strategy must prioritise availability, accessibility and affordability, noting that projections by the International Energy Agency (IEA) and the Organisation of Petroleum Exporting Countries (OPEC) show that fossil fuels will remain dominant in the global energy mix for the foreseeable future.

Lokpobiri, however, said Nigeria was positioning itself as a refining and energy hub for the Gulf of Guinea and the wider African region through policy reforms, infrastructure expansion and new investments.

As part of this repositioning, he disclosed that Nigeria approved 28 new Field Development Plans (FDPs) valued at $18.2 billion in 2025 alone, unlocking an estimated 1.4 billion barrels of crude oil reserves.

According to him, the approvals are part of a broader transformation of the petroleum sector under the Tinubu administration, which he said marked a decisive break from years of declining production, stalled investments and capital flight.

“Between 2024 and 2025, four of the seven major Final Investment Decisions announced across Africa were in Nigeria, a development attributed to policy clarity, consistent governance and deliberate leadership,” Lokpobiri said.

He noted that recent policy clarity had restored investor confidence and repositioned Nigeria as a globally competitive, investment-ready destination.

“Our investment climate in Nigeria allows for the free movement of capital. In line with global best practice, companies can invest and divest at will,” he said.

Lokpobiri also highlighted the recent transfer of onshore and shallow water assets from International Oil Companies (IOCs) to indigenous operators, citing deals involving Shell and Renaissance, ExxonMobil and Seplat, as well as Eni and Oando.

“These are not just transfers of assets; they are transfers of confidence, capability and ownership, which have resulted in an additional 200,000 barrels of oil per day,” he said.

According to him, the divestments, which had been stalled for years, were concluded swiftly under President Tinubu’s leadership, resulting in immediate gains for the new operators and the country.

On the downstream segment, the minister said the removal of fuel subsidies had stabilised the market and improved product availability. He also commended indigenous investors such as Dangote and BUA for expanding refining and midstream infrastructure.

He disclosed that licensing processes in the sector had been liberalised to ensure transparency and fairness, while Nigeria’s newly launched West African Reference Market was designed to strengthen its position as a regional refining hub.

Lokpobiri further stated that the full implementation of the Petroleum Industry Act (PIA) had provided a stable fiscal framework, improved licensing, strengthened regulation, protected host communities and ensured predictable contractual terms.

He added that the Upstream Petroleum Operations (Cost Efficiency Incentives) Order 2025 had further enhanced competitiveness by reducing production costs through targeted tax credits.

The minister highlighted the impact of Project One Million Barrels, inaugurated in October 2024, which he said had increased national crude oil production to between 1.7 and 1.83 million barrels per day, representing an incremental rise of about 300,000 barrels within a year.

He also disclosed that the number of active drilling rigs had risen from 14 in 2023 to over 60, reflecting renewed industry activity and investor confidence.

Lokpobiri cited major Final Investment Decisions as evidence of this renewed confidence, including 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.

He added that Shell had also announced plans for a $20 billion FID, with additional projects expected in the near term.

“The story of Nigeria’s petroleum sector is being rewritten,” Lokpobiri said, urging global investors to partner with Nigeria not just as financiers, but as long-term collaborators in driving Africa’s energy-led growth.