Energy experts have warned that pricing inefficiencies, crude supply constraints, and financing gaps are weakening Africa’s energy security, despite the continent’s vast natural resources.
The concerns were raised during discussions at the ARDA Week, where stakeholders stressed the urgent need for Africa to expand its refining capacity or risk deeper reliance on imported petroleum products.
Speaking at the event, Momoh Oyarekhua, Chairman of OPAC Refineries, noted that Africa’s refining landscape is gradually shifting, particularly in Nigeria, where private sector participation is increasing after years of government dominance.
“We have many licensed operators within the refining space, with several at different stages of development. This reflects a transition toward privately driven refining capacity,” he said.
Also speaking, Osam Iyahen of the Africa Finance Corporation emphasized that Africa must take control of its entire energy value chain, from production to refining and distribution, to achieve true energy independence.
Industry players are now advocating for the mobilisation of about $120 billion to build mega refineries across the continent, a move seen as critical to reducing import dependence and stabilising supply.
Recent data underscores the urgency. According to the Nigerian Midstream and Downstream Petroleum Regulatory Authority, petrol supply in Nigeria dropped sharply to 39.5 million litres per day in February 2026, down from 64.9 million litres per day in January.
The decline was largely driven by a collapse in import volumes, even as domestic refining—boosted by the Dangote Refinery—remained relatively stable. Local refining contributed 36.5 million litres per day, while imports fell to just three million litres per day, exposing vulnerabilities in the country’s fuel supply chain.
Experts warn that without sustained investment and structural reforms, Africa’s energy market will remain fragile and exposed to global shocks, despite its resource advantage.
