Introduction
Energy is essential for socio-economic development, contributing significantly to poverty reduction, improved quality of life, and national security. Over the past 50 years, the World Energy Assessment has highlighted global advancements while underscoring the importance of energy security—defined as the reliable, affordable, and adequate supply of energy. Nigeria, one of Africa’s leading energy giants, is endowed with abundant resources such as crude oil, natural gas, lignite, bitumen, and tar sands. Nigeria has vast potential with the sixth-largest crude oil reserves globally, holding an estimated 36.2 billion barrels of oil and 5,000 billion cubic meters of natural gas. Yet, despite these rich resources, the country faces enduring challenges in energy management and distribution, resulting in a gap between supply and demand.
Addressing these challenges is central to Nigeria’s pursuit of energy security and self-sufficiency, which is the cornerstone of its petroleum policy. The National Petroleum Policy (NPP) of 2017 laid a foundation for the Petroleum Industry Act (PIA) by establishing strategic goals to tackle long-standing issues in the petroleum sector. This policy framework proposed comprehensive measures to enhance the domestic energy landscape by fostering a value-added industry, increasing refining capacity, and expanding the petrochemical sector. A central objective of the NPP was to reduce state dominance in the sector, which had previously limited private-sector participation. By refocusing oil as an economic growth driver rather than merely a revenue source, the NPP pushed for regulatory reforms, encouraged divestment from underperforming government-owned refineries, and incentivized private investment.
Ultimately, the NPP envisioned a robust refining sector that could generate revenue from both refining capacity and refined products, positioning Nigeria for long-term growth and resilience in the global energy market. Within this framework, the government has empowered regulatory agencies to create a conducive environment for meeting domestic energy needs and stimulating local industry growth. This article explores Nigeria’s broader energy security and self-sufficiency objectives, using the recent lawsuit filed by Dangote Petroleum Refinery and Petrochemicals (“Dangote”) against the Nigerian Midstream and Downstream Petroleum Regulatory Authority (“the Authority”) and 6 other companies as a focal point for discussion.
