African Leaders Push For Energy Independence Amid Heavy Crude Exports And Infrastructure Challenges.
More than 75 per cent of the 1.9 billion barrels of crude oil produced in Nigeria and other African countries in 2024—amounting to 1.4 billion barrels—was exported to Europe and other continents, raising concerns over neglected local refineries and worsening energy poverty across the continent.
Despite being rich in oil resources, Africa spent around $30 billion importing petroleum products last year. However, in a notable development, Nigeria recorded an 11 per cent drop in demand for Premium Motor Spirit (PMS), credited to the deregulation of the downstream petroleum sector under President Bola Tinubu’s administration.
At the annual conference of the African Refiners and Distributors Association (ARDA) held in Cape Town, South Africa, industry stakeholders voiced strong concerns about the underutilisation of local refining capacity. Major facilities such as the 650,000 barrels-per-day Dangote Refinery and state-owned plants in Port Harcourt and Warri, along with others in Ghana and Angola, remain underused despite recent investments.
The forum, themed *‘Africa First: Delivering Our Energy Future’*, underscored how inefficiencies in refining and distribution have led to a staggering $45 billion in lost investments and $86 billion in forgone government revenues across Africa.
Executive Vice President of Afreximbank, Kanayo Awani, called for Africa to take control of its energy destiny. She criticised the continent’s longstanding reliance on exporting raw materials while importing refined products, noting that although Africa exports 80 per cent of its crude oil and 45 per cent of its natural gas, energy poverty persists.
To counter this imbalance, Afreximbank has committed over $4 billion to energy infrastructure projects in Nigeria, including the Dangote and Port Harcourt refineries. The bank is also supporting a $3 billion trade financing programme aimed at boosting intra-African petroleum trade.
Awani emphasised the importance of industrialisation, local content development, and maximising the African Continental Free Trade Area (AfCFTA) to achieve long-term energy security.
Executive Secretary of ARDA, Anibor Kragha, echoed these sentiments, urging greater investment in Africa’s downstream oil and gas sector to complement the continent’s growing crude production. He warned of the dangers of relying heavily on fuel imports, pointing out that a 30-day halt in imports could bring much of Sub-Saharan Africa to a standstill.
Despite producing over five million barrels of oil per day, downstream investment remains alarmingly low, with only $15 million to $20 million committed last year. Kragha highlighted Congo Brazzaville’s Pointe-Noire refinery, which processes just 24,000 barrels a day compared to the country’s 500,000-barrel production, as an example of the urgent need for infrastructure expansion.
Chairman of the African Energy Chamber (AEC), NJ Ayuk, painted a grim picture of the continent’s energy infrastructure: deteriorating refineries, minimal storage capacity, and damaged pipelines. He estimated a $15.7 billion funding shortfall in energy infrastructure, stressing the need to “refine, refine, refine.”
Ayuk also criticised restrictive trade policies that hinder regional cooperation. “You can send crude across borders, but an African with a passport cannot move freely,” he said, while dismissing carbon credit schemes as a “scam” and advocating for natural gas as a viable path toward industrialisation and clean energy.
President of the African Petroleum Producers’ Organisation (APPO), Omar Farouk, urged African nations to reclaim ownership of their energy policies and resources. “For too long, Africa’s resources have served others’ needs. Now, we must take control of our financing, technology, and markets,” he said.
The conference concluded with a unified call to prioritise refining, strengthen regional cooperation, and reshape the continent’s energy framework in favour of self-reliance and economic resilience.
