Africa Losing $15 Billion Annually Due to Lack of Local Value Addition in Crude Oil Sector

The 9th Nigerian International Energy Summit revealed that Africa loses $15 billion yearly due to the lack of local value addition in the crude oil sector, with 70% of crude oil and 45% of natural gas being exported without value addition. Farid Ghezali, Secretary-General of the African Petroleum Producers Organization, emphasized the need for financing refineries in Africa to increase domestic refining of crude oil.

The African Energy Bank, set to launch in Abuja by the first half of 2026, aims to be a pan-African platform to support energy projects with a goal to unlock $200 billion for midstream and downstream projects by 2030. Nigerian President Bola Ahmed Tinubu targets producing 2.5 million barrels of crude oil daily by 2027, with Vice President Kashim Shettima aiming for 1 million barrels initially and working towards 2.5 million barrels daily by 2027, ultimately eyeing 3 million barrels per day of liquid hydrocarbon and 12 billion cubic feet per day of gas by 2030.