In a historic move that reshapes Nigeria’s oil export landscape, President Bola Tinubu has commissioned the $400 million Otakikpo Oil Terminal, marking the first major crude export facility built by indigenous operators in over 50 years. The development breaks the monopoly held by international oil companies since the 1970s and signals a new era of local participation in Africa’s largest oil economy.
The terminal, equipped with an initial storage capacity of 750,000 barrels expandable to three million barrels, is expected to enhance Nigeria’s export efficiency while reducing pressure on aging infrastructure dominated by facilities at Bonny, Escravos, Forcados, Qua Iboe, and Brass—all built by foreign oil giants.
“For over half a century, our crude export infrastructure has been dominated by international oil companies. The commissioning of the Otakikpo Terminal today changes that story and marks the dawn of a new era of indigenous participation,” declared Engr. Gbenga Komolafe, Chief Executive Officer of the Nigerian Upstream Petroleum Regulatory Commission.
President Tinubu revealed that the facility will play a crucial role in evacuating crude from Ogoni communities once longstanding issues hindering production in the region are resolved. The terminal represents a significant step toward empowering indigenous operators to compete on the global stage.
In related developments, the Federal Government has reaffirmed its commitment to the Naira-for-crude oil sale policy with local refiners, particularly the Dangote Refinery. Minister of State for Petroleum Resources, Senator Heineken Lokpobiri, announced at the 2025 Crude Oil Refinery Owners’ Association of Nigeria Summit in Lagos that the policy remains a cornerstone strategy to reduce fuel production costs and shield indigenous refiners from exchange rate volatility.
“The Federal Government remains committed to sustaining the Naira-for-crude sale arrangement as it mitigates exposure to fluctuating foreign exchange rates and reinforces our drive for indigenous refining,” Lokpobiri stated, adding that every barrel of crude produced in Nigeria must contribute to meeting both domestic and international obligations.
The government has also launched the West African Fuel Reference Market initiative, positioning Nigeria as a regional refining and petroleum products supply hub for West Africa. With increased local refining capacity, Nigeria aims to serve as a dependable supplier of refined products to neighboring countries, reducing the region’s reliance on distant refineries and costly maritime imports.
The President also announced that the African Energy Bank, to be hosted by Nigeria, would soon become operational to address Africa’s funding challenges in the energy sector, with the country having met all legal and financial obligations.
Source: thesun.ng, dailytrust.com