Africa loses $90 billion annually to lack of refining capacity, energy experts report, as the continent continues to export crude oil while importing most of its refined petroleum products. This stark contradiction undermines economic self-reliance and perpetuates job losses and structural poverty.

Despite producing nearly 7 million barrels of crude oil daily, Africa refines only about 40% of its 4.3 million barrels daily fuel consumption domestically. In comparison, Europe and Asia refine over 95% of their own needs.

Industrialist Aliko Dangote, speaking at the West Africa Refined Fuel Conference in Abuja, described the situation as a “market opportunity being captured by regions with surplus refining capacity.” He stressed that an entire continent is effectively exporting jobs and importing poverty through this flawed model.

New refining projects are underway across Africa. Nigeria’s Dangote Refinery is now the continent’s largest, with a processing capacity of 650,000 bpd, aiming to reduce dependency on imported fuel. Upgrades are also in progress at the Port Harcourt and Warri refineries, while Angola, Ghana, and Uganda are investing in new modular and conventional refineries to meet regional demand.

Despite these developments, Africa still imports over 120 million tonnes of refined petroleum annually due to chronic underinvestment, obsolete infrastructure, and low refinery utilization rates. In many countries, refineries operate at less than 30% capacity—fueling this unsustainable import model.

Projections indicate that by 2030, refining capacity across Africa could climb to 2.4 million bpd, spurred by both large-scale plants and modular refineries. These expansions aim to substitute imports, retain value within the continent, boost industry, and stabilize fuel prices.

Analysts argue that aggressive investments in refining infrastructure—notably modular projects—alongside comprehensive deregulation of the downstream sector, are essential to reversing the current drain on Africa’s economic potential.