Experts Warns Pricing Inefficiencies, Financing Gaps Undermining Africa’s Energy Security

Key energy stakeholders, who gathered at the African Refiners and Distributors Association (ARDA) Week in Cape Town, South Africa, have expressed concern that persistent crude supply constraints, pricing inefficiencies and financing gaps continue to undermine the continent’s energy security.

They advocates that Africa must urgently scale up refining capacity or risk deepening its dependence on imported petroleum products despite abundant natural resources.

Addressing some of the key issues on energy development, Chairman of OPAC Refineries and founder of OMSA, Momoh Oyarekhua, said Africa’s refining landscape was evolving, particularly in Nigeria, where private sector participation has grown steadily following decades of state dominance.

“We have many licensed operators within the refining space, including a number of private refineries, ours among them. Other licence holders are at various stages of development, reflecting a gradual transition from government-owned to privately driven refining capacity,” Oyarekhua said.

Also, in his remarks, Senior Director and Head of Infrastructure (Transport & Logistics) at the Africa Finance Corporation (AFC), Osam Iyahen, said Africa’s energy sovereignty requires control of the entire value chain, from upstream production to downstream refining and distribution, ensuring that African resources are processed and consumed within the continent.

Meanwhile financial experts and energy stakeholders within the region are pushing to raise about $120 billion to build mega refineries.

Petrol supply in the West African country fell sharply in February 2026 despite a surge in domestic refining, as a steep drop in imports offset gains from local production, exposing the fragile balance sustaining the country’s downstream fuel market.

According to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) petrol supply in Nigeria declined to 39.5 million litres per day in February 2026, down from 64.9 million litres recorded in January.

Data from the Agency indicates that the 25.4 million litres per day contraction was driven primarily by a significant reduction in import volumes, even as domestic supply, boosted by the Dangote Refinery, remained relatively strong.

Local refining contributed 36.5 million litres per day in February, while imports collapsed to just three million litres per day, marking one of the lowest import levels in recent months.

This compares with January figures, where domestic supply stood at 40.1 million litres per day alongside 24.6 million litres per day of imports, highlighting the scale of the adjustment in external sourcing