The minister of state for Petroleum Resources (oil), Heineken Lokpobiri, has called for renewed global investment in oil and gas infrastructure, disclosing that the world needs to invest at least $450 billion annually to maintain and rebuild existing assets critical to energy security and economic stability.
Lokpobiri disclosed while speaking at the 9th edition of the 2025 OTL Africa Downstream Energy Week in Lagos, where he emphasised that the global narrative on energy transition must be balanced with the realities of growing energy demand, particularly in developing economies.
“According to the International Energy Agency (IEA), the world needs to invest about $450 billion annually in oil and gas development to avoid an energy crisis by 2050,” Lokpobiri said. “This shows a major shift from the previous position that called for the end of fossil fuel investments.”
The minister noted that the IEA, which had earlier projected a gradual phase-out of fossil fuels in favour of renewables, has revised its outlook to recognise rising global energy demand, population growth, and the need for supply stability.
Citing the 2025 IEA report, Lokpobiri said the agency now acknowledges that oil and gas will continue to play a vital role in the global energy mix for decades, accounting for over 60 per cent of energy demand by mid-century.
“The world population is expected to grow by another two billion people by 2050, and with that, energy demand will rise significantly,” he said. “Even with the best of renewable energy technologies, hydrocarbons will remain indispensable to global energy security.”
He stressed that, beyond the $450 billion annual requirement for infrastructure recovery, global spending on the upstream, midstream, and downstream sectors should exceed $700 billion annually to prevent future supply disruptions and price volatility.
Lokpobiri highlighted that Africa remains a major producer and a significant consumer of hydrocarbons. Yet, most of the continent’s value in energy trade is lost to imports due to limited refining capacity and distribution infrastructure.
He revealed that as of 2024, Africa imported $120 billion worth of hydrocarbon products, underscoring the need for local refining and value addition to retain wealth within the continent.
“Africa has the market, with over 1.5 billion people, but we also have limited financial capacity and weak distribution networks,” he explained. “Our challenge is not the absence of demand, but our inability to capture value locally.”
Lokpobiri said Nigeria’s policy focus under President Bola Tinubu is to reverse this trend by driving domestic refining, regional trade integration, and investment in the downstream value chain.
He commended the ongoing efforts by private sector players such as Dangote Petroleum Refinery and other modular refinery investors, saying their projects would stabilise Nigeria’s fuel supply and support West Africa’s growing demand.
“The proposed expansion of the Dangote Refinery to 1.4 million barrels per day will not just save Nigeria; it will save Africa and the world,” he said. “The federal government will give full support to ensure its completion.”
Lokpobiri reiterated that the removal of fuel subsidies in 2023 created the fiscal space necessary for private investment to thrive, describing the policy as a “bold but necessary” step toward energy market reform.
Lokpobiri lamented that despite global pledges for climate financing, very little of the promised funds have been disbursed to developing countries. He accused Western nations of using “climate finance” as a political tool while failing to deliver real support for energy transition in Africa.
“Billions of dollars have been pledged, yet nothing tangible has been given,” he said. “Instead of allowing the West to weaponise capital against Africa, we must find solutions and mobilise financing for our energy development.”
The minister said Africa’s contribution to global emissions remains marginal, about three per cent, compared to industrialised nations responsible for 97 per cent of greenhouse gas output. He argued that even if Africa halted all fossil fuel use today, it would have little impact on global warming.
“If Africa explores all its hydrocarbon resources, we’ll only add one per cent to global emissions,” Lokpobiri said. “So it’s unfair for the same nations that built their wealth on fossil fuels to tell Africa not to develop hers.”
Lokpobiri urged African policymakers and investors to change the conversation from “energy transition” to “energy security,” stressing that the continent must secure reliable and affordable energy before transitioning to cleaner sources.
“My position has always been that you can’t transition from nothing,” he said. “We must first secure energy access and affordability for our people before talking about phasing out hydrocarbons.”
He revealed that Nigeria is actively engaging international partners and investors to attract new capital into the oil and gas value chain, with several agreements signed recently in the United States and Europe.
“We are creating a globally competitive environment,” he said. “Investors are returning to Nigeria because they see stability, reform, and opportunity. Our goal is to ensure that oil and gas continue to fund our development while we gradually build the future of clean energy.”
Lokpobiri lauded the organisers for sustaining the conference for nine consecutive years, describing it as a vital platform for shaping policy and investment dialogue in Africa’s energy space.
“Sustaining this event for nearly a decade shows remarkable resilience and innovation,” he said. “The conversation we are having here is no longer about abandoning oil and gas—it’s about investing wisely to secure our future.”
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