Nigeria Prioritises Domestic Oil Refining for Energy Security

The Federal Government has identified domestic oil refining as a key element of Nigeria’s energy security strategy, according to statements made at the Nigeria Oil Refining Summit held in Lagos on September 29, 2026. This policy direction is intended to move beyond industrial objectives and focus on national energy needs.

At the summit, the Minister of State for Petroleum Resources (Oil), Dr. Heineken Lokpobiri, was represented by his Technical Adviser on Regulation, Engr. Umar Gwandu. Dr. Lokpobiri stated that Nigeria should increase the value obtained from each barrel of oil produced within the country.

The event was organised by the Crude Oil Refiners Owners Association of Nigeria (CORAN). The Chairman of CORAN, Mr. Momoh Oyarekhua, said that refining Nigerian crude oil domestically is expected to support job creation, business growth, value retention, and improved energy security.

The Federal Government’s policy framework for refining is designed to provide clear guidance for investors, enforce national obligations, encourage innovation, and support long-term commercial viability. This approach aims to attract investment and sustain the refining sector over time.

What the numbers show

• The Nigeria Oil Refining Summit took place on September 29, 2026.
• The Petroleum Industry Act was enacted in 2021.
• Dr. Heineken Lokpobiri was represented by Engr. Umar Gwandu at the summit.

According to government statements at the summit, current policies are focused on reducing Nigeria’s reliance on crude oil exports. The strategy involves building an integrated value chain that includes domestic refining, expansion into petrochemicals, and increased industrial activities.

The Petroleum Industry Act 2021 serves as the legislative basis for these changes. The Act is intended to support the transformation of Nigeria’s oil sector by enabling more domestic processing and value addition.

Industry participants at the summit highlighted the potential benefits of refining crude oil within Nigeria, including economic growth and enhanced energy security. The policy framework is structured to be adaptable, allowing for innovation while maintaining regulatory certainty for investors.

By shifting focus toward domestic refining and value capture, the Federal Government aims to create a more resilient and diversified energy sector. The ongoing implementation of these policies is expected to reinforce Nigeria’s position in the oil and gas industry through increased local processing and industry participation.

* This article is based on publicly available information at the time of writing.