The 19th Oil Trading and Logistics (OTL) Africa Downstream Energy Week, with the theme: “Energy Sustainability: Growth Beyond Boundaries and Competition,” converged key industry and policy makers in Lagos, with resounding partnership deals with the hope of strengthening regional markets, writes CHIKA IZUORA
No doubt the OTL Africa Downstream Energy Week is Africa’s leading downstream and midstream energy event for international organisations, policy makers, regulators, development organisations, operators, service providers and consumers in the downstream energy value-chain.
It incorporates a strategic conference, a trade and services exhibition and high-level networking opportunities, creating a first-rate business development and policy activation opportunity.
Focus areas cut across the downstream and midstream petroleum and renewable energy supply chain, including refining, trading, shipping, tank storage, logistics, marketing, retail, lubricants, petrochemicals, gas, financial services energy, technology, power and policy.
At the 19th conference, energy experts from across the world made commitments and pledged synergy that will open investment opportunities for the country.
Leading the commitment towards enhancing energy efficiency in Nigeria, President Bola Tinubu, revealed Nigeria’s ambition to retain a large proportion of value from about $120 billion worth of invested capital in hydrocarbon resources in Africa in 2024.
Tinubu, projected that this would be achieved through aggressive refining and distribution networks that would create a corresponding market for the humongous investments.
Tinubu lamented the lack of access to capital in Africa, despite holding over $4 trillion investable funds. He pledged his administration’s support for Dangote Refinery to enable it achieve expansion to 1.4 million barrels per day (bpd), from the existing 650,000 bpd capacity.
Represented by Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, Tinubu said by 2024, data showed that African countries collectively invested about $120 billion worth of hydrocarbon resources, with no corresponding market for it. He said this meant Africans were not getting the full value they should because of their limited refining capacity and weak distribution networks.
According to him, most of the money goes back to countries outside Africa that invested in these resources.
Tinubu explained, “The target of the Nigerian government is to see how we can retain a large proportion of this capital within our borders. That is why Nigeria is planning to launch the West African Petroleum Market. The idea is to make Nigeria the refinery and distribution hub for the entire continent.
“The whole of Africa is waiting for Nigeria to take the lead as a major supplier and distributor of petroleum products. Recall that every volume of petroleum product imported into Nigeria eventually finds its way across the West African regional market.”
Announcing what he termed a good news for Nigeria and Africa, the president said the International Energy Agency (IEA) had now acknowledged the need for sustained upstream investment after years of campaigning for a net-zero vision, a campaign that threatened the value of oil and gas globally.
He said the 2025 IEA Report clearly showed that the world needed to invest about $540 billion annually in upstream oil and gas to avoid a global energy crisis by 2050.
Tinubu added, “So, those who have been promoting the net-zero narrative are now realising that without adequate oil and gas investment, the world will face an energy crisis. Oil and gas currently account for over 50 percent of global energy demand, and by 2050, the world’s GDP will still depend heavily on hydrocarbons.
“Going by this new global narrative, if we combine investments across the entire value chain — upstream, midstream, and downstream — the world will need to invest over $700 billion annually to avoid an energy crisis by 2050. That’s good news for Nigeria.
“The discussion has always been about energy transition, but we must understand why we are transitioning and how to fund it. While sustaining investment in oil and gas, we must also expand those investments and use the proceeds to finance renewable energy. Even if we want renewables, we still need oil and gas money to fund them.”
According to him, Africa, with its population of about 1.5 billion people, is already a ready-made market for energy products.
He said that was the reason the continent currently imported over 120 million litres of petroleum products daily.
However, Tinubu said Dangote Refinery’s expansion to 1.4 million bpd was part of the effort to serve West Africa and the entire continent, pledging his administration’s full support to the realisation of the expansion drive.
“The federal government will fully support Dangote to achieve this. That is one of the reasons petrol subsidy was removed. With subsidy in place, the private sector cannot grow,” the president assured.
He observed that the downstream and midstream sectors would only grow when the private sector mobilised capital and invested locally.
Tinubu stated that deregulation and privatisation paved the way for availability, accessibility, and affordability, warning that no matter the challenges, if Nigeria does not embrace reform, the economy may crumble.
He recounted that before now, the government was spending over N2 trillion annually on fuel subsidies, saying those funds are now being redirected to more productive uses.
“The truth is, the subsidy regime ended up subsidising consumption across the West African sub-region, not just Nigeria,” Tinubu said.
He said stakeholders must understand that the world’s energy dynamics were changing, adding that when energy security is talked about, it’s not just about drilling barrels but about creating a sustainable ecosystem across the value chain.
The president explained, “Africa has crude oil reserves of about 140 billion barrels and natural gas reserves exceeding 600 trillion cubic feet. Even if we explore all our hydrocarbon resources, the entire continent will still be contributing less than 3 percent to global emissions.”
“Global warming will not stop even if Africa shuts down its three percent contribution, while those responsible for 97 percent are not slowing down on emissions. That is why it will be disastrous for Africa to abandon its hydrocarbon development.”
He said, “When Nigeria speaks, we must speak boldly and insist on our own narrative. We must have a common agenda and a united African voice against the unrealistic promoters of net zero.
“The downstream sector cannot succeed without a strong upstream and midstream foundation. There are opportunities for everyone with the requisite capital and expertise.”
Tunubu said over the past two years, there had been renewed investor interest in Nigeria’s oil and gas industry.
Stating the availability of capital in the United States and other parts of the world, he said Africa was estimated to hold over $4 trillion in investable funds.
But the challenge, according to him, was that Africans have not been able to access this capital.
Instead of allowing the Western narrative to weaponise capital against Africa, Tinubu said the continent must develop home-grown solutions for energy financing — across upstream, midstream, and downstream segments.
He said, “Even if the West decides not to invest in our hydrocarbons, Africa must continue to invest in its energy future.
“There is no truth in the so-called billions of dollars pledged globally for carbon capture and climate financing; these are mostly rhetoric and unfulfilled promises.
“No one will be held accountable if they fail to deliver the promised funds. So, we must take our destiny into our own hands and expand investment opportunities across the oil and gas value chain — upstream, midstream, and downstream.”
On its part, the Nigerian National Petroleum Company Limited (NNPCL) said it is embarking on strategic infrastructure development initiative to support oil and gas growth as Government sustains fiscal reforms that is expected to attract more investments.
The Company under the arrangement will be deploying additional infrastructure across the oil and gas value chain while revamping existing downstream infrastructure nationwide.
These assets will be accessible to partners seeking to store and transport products, supporting strategic alliances and collaboration in the downstream sector.
The Group Chief Executive Officer, of the NNPCL Engr. Bayo Ojulari, speaking at the conference further reiterated the Company’s commitment to the development and revamping of downstream across the country to enhance collaboration and drive efficiency in the sector.
Ojulari, who was represented by the Executive Vice President Downstream, Dr. Mumuni Dagazau, while speaking on the conference’s theme “Energy Sustainability: Beyond Boundaries & Competition”, said competition alone was no longer enough to drive efficiency, adding that operators must embrace collaboration, sustainability, and resilience as the new benchmarks for success.
“At NNPC, we are committed to deploying additional infrastructure across the oil and gas value chain while revamping our existing downstream infrastructure nationwide. These assets will be accessible to partners seeking to store and transport products, supporting strategic alliances and collaboration in the downstream sector,” the GCEO said.
He disclosed that a cocktail of factors ranging from strategic policies and fiscal incentives to transparent and well-structured regulatory frameworks exemplified by the PIA have engendered expansion and growth in the sector requiring new skill sets and further investments in new lines of business such as Liquefied Petroleum Gas (LPG), Compressed Natural Gas (CNG), and mini-LNG projects.
He urged participants at the conference to discuss challenges and align on opportunities “to redefine energy systems in ways that are both profitable and sustainable, to forge cross-sector partnerships that transcend traditional competition, and to explore innovative business models and technologies that support decarbonization while driving economic value”.
The OTL Africa Downstream Energy Week is the continent’s leading downstream and midstream energy event for international organizations, policy makers, regulators, development organisations, operators, service providers, and consumers in the downstream energy value-chain.
The Chairman of the OTL Africa Downstream Energy Week, Otunba Adetunji Oyebanji, also challenged the Federal Government to adopt policies that will integrate renewables, strengthen regional cooperation, and leverage technology to enhance operational efficiency in the energy sector so as to achieve energy security.
Oyebanji, also said the country must also continue to nurture human capacity, ensuring that the next generation of professionals is equipped to sustain and expand the gains we have made.
The Chairman, stated that each year, the gathering serves as a bridge between policy and practice, a meeting point for thought leaders, regulators, operators, investors, and innovators committed to building a strong and sustainable future for Africa’s downstream energy sector.
The OTL Chairman said the theme for this year, “Energy Sustainability: Growth Beyond Boundaries & Competition,” is both timely and visionary. It reflects the realities of today’s energy landscape, one defined by volatility, innovation, and transformation, and challenges us to seek growth that is sustainable, inclusive, and without limits.
According to Oyebanji, the global energy industry is at an inflection point. Across continents, shifting geopolitical tensions continue to influence production, pricing, and supply chains. The ongoing conflicts in Eastern Europe and parts of the Middle East have kept global oil markets tight, creating uncertainty in both demand and distribution.
Meanwhile, the steady march toward energy transition is reshaping investment priorities, with cleaner fuels, carbon capture, and renewable integration increasingly taking centre stage.
“For Africa, and indeed for Nigeria, these changes present both challenges and opportunities. As the world redefines its energy future, our continent, richly endowed with resources and youthful human capital, must position itself not just as a supplier of raw hydrocarbons, but as a hub for innovation, efficiency, and value addition.”
Energy sustainability is not merely about preserving resources; it is about ensuring that our growth today does not compromise the prosperity of tomorrow. It is about building an industry that is competitive, responsible, and adaptable to a rapidly changing global environment.
Oyebanji made it known that Africa stands at a defining moment in its energy evolution. Across the continent, rising populations, industrialization, and urban expansion are driving energy demand at unprecedented rates. At the same time, investments in refining, gas infrastructure, and cross-border energy trade are reshaping the continent’s energy map.
Nigeria, as Africa’s largest energy producer and consumer, occupies a central position in this transformation. The deregulation of the downstream petroleum sector, the renewed commitment to gas commercialization, and the focus on infrastructure development have laid a foundation for long-term growth.
“To truly achieve growth beyond boundaries, we must broaden our scope, integrating renewables, strengthening regional cooperation, and leveraging technology to enhance operational efficiency. We must also continue to nurture human capacity, ensuring that the next generation of professionals is equipped to sustain and expand the gains we have made.”
The OTL Chairman said downstream market continues to evolve amid both turbulence and renewal. The removal of fuel subsidies and the liberalization of the market have brought new realities, tough, but necessary steps toward a more competitive and efficient sector.
Operators are facing increased costs, supply chain disruptions, and regulatory complexity. Yet, we are also seeing unprecedented innovation, in logistics optimization, storage efficiency, digital trading platforms, and cleaner fuel distribution models. These developments are redefining competitiveness and signaling the emergence of a more resilient, forward-looking market.
The future of energy must be one that transcends boundaries, geographical, technological, and conceptual. As the lines blur between traditional hydrocarbons, renewables, and alternative energy sources, it becomes clear that the path to sustainability lies in integration rather than isolation.
“We must build systems that encourage innovation while safeguarding the environment. We must promote efficiency not just as an operational metric, but as a core philosophy. And we must ensure that growth extends beyond corporations and markets to touch lives, providing access.”
He pointed out that over the past nineteen years, OTL Africa Downstream Energy Week has established itself as the continent’s most influential platform for policy dialogue, business networking, and industry development in the downstream energy value chain.
Through the years, OTL has provided a consistent platform for engagement between government and private sector, fostering ideas that have shaped national and regional policies. It has created a space where regulators listen to industry, and industry, in turn, aligns with policy direction.
“As we look to the future, the imperative is clear: Africa must define its own path to energy sustainability. The opportunities before us are immense, but they require courage, clarity, and cooperation.”
Oyebanji urged stakeholders to invest in infrastructure, pipelines, depots, data systems, and digital tools. We must build capacity through research, training, and innovation. And we must hold ourselves accountable to the highest standards of transparency and environmental responsibility.
“The downstream sector remains at the heart of Africa’s energy value chain. Its growth and transformation will determine how successfully we navigate this new era of sustainability and competition. Let us therefore seize this moment with purpose and foresight, working together to ensure that our industry not only survives change, but leads it.”
Lagos State Government at the summit reaffirmed its position regarding promoting private sector participation in its ongoing clean energy development.
The State Governor, Babajide Sanwo-Olu, said the Lagos State Electricity Policy and the Lagos Energy Transition Plan, are geared towards expanding access to clean energy, promote private involvement, and establish Lagos as a leading example of subnational leadership in Africa’s energy transition.
“As the Chief Host, I want to reaffirm Lagos State’s dedication to collaborating with platforms like OTL Africa, which bring together policymakers, regulators, investors, and innovators to create a sustainable and thriving energy future.” the Governor said.
The Governor who was represented by the Commissioner For Energy Lagos State, Mr. Biodun Ogunleye
recalled that through this platform, the state government has seen incredible examples of progress.
Citing examples, Sanwo-Olu, recalled that Mainland Oil and Gas recently announced multi-billion-naira investments in Compressed Natural Gas (CNG) and Liquified Petroleum Gas (LPG) distribution and regional growth.
He also mentioned Rainoil Limited which has maintained its partnership with OTL for over a decade, demonstrating its commitment to enhancing energy access in Africa.
Additionally, global tech leaders like Dover Fueling Solutions have unveiled cutting-edge forecourt automation and digital innovations at this event, pushing modernization in Africa’s fuel retailing and logistics sectors.
These examples the Governor said highlight the incredible strength of collaboration from the conference especially to envision a future where sustainability, innovation, and inclusivity shape the African energy landscape.
The summit he added also serves as a reminder that progress is not a competition but a collective journey filled with ideas, investments, and shared visions.
Sanwo-Olu, recalled that for nearly twenty years, OTL Africa has stood as the continent’s leading platform for discussions on downstream and midstream energy, showcasing technology and fostering business partnerships, adding, “We in Lagos take pride in hosting this global event, which has found a home in our city for nearly every edition since it began. This lasting connection reinforces Lagos’s status as the energy and logistics capital of sub-Saharan Africa, a true hub of innovation, enterprise, and strategic investment.”
The journey of OTL Africa is marked by real impact and forward-thinking results, he stressed, noting “Over the years, this platform has played a crucial role in shaping the agenda for downstream development across Africa — sparking reforms, attracting investments, and fostering discussions that have led to meaningful change.”
He said that It at the OTL event that strong advocacy for downstream deregulation began, significantly influencing policy changes that now promote competition, innovation, and private-sector involvement throughout the continent.
