Tinubu: Africa must harness $120bn hydrocarbon wealth for its people

…Calls for global $540bn annual investment in oil and gas infrastructure

…Lokpobiri reaffirms Nigeria’s commitment to energy investment, reform

President Bola Ahmed Tinubu has called for Africa’s vast hydrocarbon resources, valued at over $120 billion, to be fully harnessed for the benefit of the continent and its people.

The President made this known at the opening ceremony of the 19th OTL Africa Energy Week, which commenced in Lagos on Monday. Represented by the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, Tinubu said that Africa’s limited refining capacity and inadequate distribution infrastructure have forced the continent to export much of its crude while importing refined products at high cost.

He urged African nations to focus on expanding local refinery capacity and strengthening regional distribution networks to retain more value within the continent’s economies.

“Africa must take ownership of its hydrocarbon destiny. Our $120 billion worth of resources must directly benefit our people through investments in refining and distribution,” Tinubu stated.

The President emphasized that the ongoing global energy transition must be balanced with the realities of energy security, noting that the world continues to depend heavily on oil and gas.

According to Lokpobiri, who delivered the President’s address, recent United Nations reports highlight the urgent need for sustained investment in oil and gas to meet the world’s growing energy demands.

“The UN projects that the world needs to invest about $540 billion annually in oil and gas recovery and associated infrastructure to maintain a stable energy supply,” he said. “The world has come to realise that energy transition cannot happen in a vacuum. Even as we pursue cleaner sources, the global economy still runs on hydrocarbons.”

Lokpobiri noted that while climate change and net-zero targets remain critical, hydrocarbons will continue to play a central role in meeting the world’s energy needs for the foreseeable future.

“With Africa’s population exceeding 1.4 billion, the continent cannot afford to neglect investments in oil and gas. Expanding exploration, production, and refining capacity is essential for self-sufficiency and economic stability,” he added.

The minister also highlighted the progress in Nigeria’s downstream petroleum sector following the removal of fuel subsidies and the liberalisation of product pricing, describing the reforms as a necessary step toward market efficiency and private sector participation.

“Subsidy was not sustainable. It discouraged investment and imposed a heavy fiscal burden on government. The liberalisation policy has opened the sector to competition, ensuring efficiency and accessibility,” he said.

Lokpobiri commended President Tinubu for his bold policy decisions, saying they have repositioned Nigeria’s downstream sector for long-term growth and energy security.

“It takes courage to make decisions that may be unpopular today but are essential for future stability. The reforms we are witnessing now are the results of such visionary leadership,” the minister stated.

He reaffirmed the Federal Government’s commitment to deepening investment across the oil and gas value chain, promoting domestic refining, and building a diversified and sustainable energy mix.

“We are no longer talking only about transition; we are focused on creating an energy mix that guarantees energy security for Africa. Every stakeholder must align with this vision,” he urged.

Now in its 19th edition, the OTL Africa Downstream Energy Week remains Africa’s premier platform for policy dialogue, industry networking, and investment promotion within the downstream and midstream petroleum sectors.