By Dowell Sichitalwe
In a continent brimming with oil wealth, the paradox of fuel import dependency has reached a critical inflection point. Speaking at the West Africa Refined Fuel Conference in Abuja, Africa’s richest man, Aliko Dangote, delivered a blunt warning: by failing to refine its own crude oil, Africa is exporting jobs and importing poverty — a self-inflicted wound that drains over $90 billion annually from its economies.
Despite possessing substantial reserves and infrastructure, only 31% of the continent’s gasoline is refined locally. The remaining 69% is imported, often at a premium, and frequently under conditions that compromise environmental and product standards. According to the Nigeria Midstream Downstream Petroleum Regulatory Authority (NMDPRA), five key West African nations — Nigeria, Ghana, Niger, Senegal, and Côte d’Ivoire — operate with a combined refining capacity of 1.335 million barrels per day. Yet, they remain tethered to foreign supply chains.
Dangote’s own experience building Africa’s largest refinery in Lagos starkly illustrates the continent’s systemic inefficiencies. “Rather than selling to us directly, international traders bought Nigerian crude and resold it to us at a premium,” he said. Even with such a monumental investment, the refinery continues to import crude monthly from the United States and elsewhere due to opaque market practices and regulatory bottlenecks.
A critical issue raised was Africa’s fragmented fuel standards, which frustrate intra-regional trade. “The diesel we refine for Nigeria cannot be sold in Ghana, Togo or Cameroon,” Dangote lamented. This lack of harmonisation not only hampers trade but rewards foreign traders who benefit from Africa’s disunity.
The threat of toxic fuel dumping is equally pressing. Russian petroleum products, often blended to substandard levels, are flooding African markets — risking public health and undermining local refining efforts. “We must not let dumping destroy our manufacturing base like it did with textiles,” Dangote urged.
Despite formidable challenges, pockets of progress shine through. Nigeria has become a net exporter of cement, urea and petrol, and Dangote’s refinery has already exported over one million tonnes of Premium Motor Spirit since June. Preparations for a public listing are underway, indicating investor confidence in domestic capability.
Farouk Ahmed, NMDPRA’s Chief Executive, emphasized the transformative potential of refining investments and called for regional pricing indices to stabilize and standardize markets. Meanwhile, Bayo Ojulari of NNPCL described refining deficits as an “existential threat” to Africa’s energy sovereignty.
The African Refiners and Distributors Association (ARDA) estimates that over $15 billion in downstream investment is needed across the continent over the next decade. Its Executive Secretary, Anibor Kragha, struck a rallying chord: “Let us not wait for others to define our energy destiny. Let us shape it together, by Africans, for Africans.”
With OPEC forecasting 1.2 million barrels per day of added refining capacity across Africa by 2030, the opportunity to break free from dependency is within reach. But success will hinge on harmonising standards, eliminating rent-seeking systems, and rallying political will.
Africa is not short on resources. It is short on integration, foresight and urgency. Without coordinated action, the continent risks perpetuating a cycle where wealth is extracted, while poverty is imported. The time to refine our future — literally and figuratively — is now.