The Minister of State for Petroleum Resources, Heineken Lokpobiri, has defended the Federal Government’s deregulation of Nigeria’s downstream petroleum sector, saying the removal of fuel subsidy has freed up resources for investment and economic development.
Lokpobiri said Nigeria could no longer afford to subsidise petrol, noting that the government previously spent significant resources on subsidy while facing debt obligations and limited revenue for other sectors.
According to the Minister, funds saved from subsidy removal are now being distributed among the three tiers of government, providing states and local governments with additional resources to finance development projects.
He said about 27 states previously lacked the financial capacity to pay workers’ salaries.
Lokpobiri Compares Nigeria’s Petrol Price With Other Countries
Lokpobiri said the average petrol price in Nigeria is currently about ₦1,430 per litre, compared with approximately ₦1,633 in the United States, ₦1,959 in Cameroon, and ₦2,070 in Ghana and South Africa.
The Minister also argued that the operation of the Dangote Refinery does not automatically translate into lower petrol prices, explaining that crude oil and refined petroleum products are globally traded commodities.
He noted that the United States, despite being the world’s largest producer of oil and gas and having the highest refining capacity, still records a higher petrol price than Nigeria.
Deregulation Creating New Investment Opportunities
Lokpobiri said deregulation had created what he described as a “new economy” by encouraging private investment and enabling businesses in the oil and gas sector to compete and expand.
He cited the Dangote Refinery as an example, arguing that the facility would have faced difficulties if the government had continued importing petrol and selling it below market prices.
The Minister maintained that the Federal Government would not reverse the deregulation policy, saying the objective was to strengthen investment and support the growth of Nigeria’s midstream and downstream petroleum sectors.
He said the government would continue to pursue policies aimed at attracting private capital and expanding investment across the oil and gas value chain.
Dangote Refinery’s Presence Doesn’t Mean Fuel Will Be Cheaper – Minister pic.twitter.com/8gsVXZxE5X
— Channels Television (@channelstv) September 23, 2026
