The African Export-Import Bank (Afreximbank) has unveiled a $3 billion revolving credit facility aimed at reducing Nigeria’s fuel import burden and boosting intra-African trade in refined petroleum products. The initiative is expected to channel up to $14 billion in trade finance over the next three years.
The programme, known as the Revolving Intra-African Oil Import Financing Programme, will allow African and Caribbean governments, oil traders, and refineries to more easily trade refined fuels—such as petrol, diesel, jet fuel, and kerosene—within the continent.
Afreximbank says the move is designed to cushion regional economies from global oil price volatility and rising freight costs, especially in light of ongoing tensions in the Red Sea that have driven up maritime insurance premiums and disrupted global supply routes.
The bank’s president, Professor Benedict Oramah, described the programme as a strategic push to “transform the Gulf of Guinea into a key refining hub,” leveraging Africa’s growing capacity to process crude oil domestically rather than export it raw.
“Africa produces over 4 million barrels of crude oil daily, yet imports most of its refined petroleum products,” Oramah noted. “This programme will help reverse that trend by promoting local refining and increasing regional energy self-sufficiency.”
The initiative also supports the objectives of the African Continental Free Trade Area (AfCFTA), which aims to foster regional industrialisation, reduce reliance on foreign imports, and stimulate job creation.
Afreximbank has been instrumental in financing a number of major refinery projects across Africa, including Nigeria’s 650,000 barrels-per-day Dangote Refinery, the Port Harcourt Refinery rehabilitation, and ongoing construction of the BUA and Azikel Refineries. In Angola, the bank has supported the Cabinda Refinery and is backing the Lobito Refinery development.
Under the new financing scheme, governments—through their ministries of finance or petroleum—can secure upfront credit to purchase refined products from African-based refineries. The programme will also extend support to African and international oil traders and banks involved in cross-border fuel trade.
Impact on Nigeria
For Nigeria, one of Africa’s largest oil producers but a chronic fuel importer, the facility is expected to significantly reduce pressure on foreign reserves and cut the estimated $30 billion annual fuel import bill. The availability of local trade finance is also likely to enhance energy affordability and improve fuel supply consistency.
Speaking on the programme’s regional significance, President Lazarus Chakwera of Malawi hailed it as a bold step towards African energy independence.
“This initiative represents Africa taking control of its energy future,” Chakwera said. “By strengthening intra-African trade and keeping more value within the continent, it improves lives and boosts economic resilience.”
Experts believe the programme could trigger a ripple effect in related industries such as maritime transport, cargo insurance, and downstream petroleum services—further deepening the continent’s industrial base.
