Nigeria: African Refinery Sector Sees Resurgence With New Capacities

25 July 2024

After a period of stagnation, Africa's refinery sector is showing signs of resurgence, driven by significant capacity expansions in Nigeria, Ghana, and Angola.

A new report by Hawilti highlights the transformative potential of this growth, which is expected to enhance energy security and boost economic development across the region.

"The recent wave of refinery developments marks a significant shift for Africa," said Souheil Abboud, Managing Director at VFuels LLC.

"Moreover, the continued interest in modular projects in West Africa is likely to sustain capacity growth in the short and medium terms."

The Dangote Refinery in Nigeria, one of the largest single-train refineries globally, is at the forefront of this resurgence, with a refining capacity of 650,000 barrels per day.

The recently commissioned Sentuo Oil Refinery in Ghana is also contributing to the region's growing refining capacity.

The Cabinda Refinery in Angola, scheduled for commissioning later this year, will further boost the continent's refining capacity, reducing dependence on imported fuels and supporting local economic development.

While challenges persist, including access to capital and securing crude oil feedstock, Hawilti notes that the benefits of investing in new facilities and upgrading existing infrastructure extend beyond economic gains, enhancing energy security and stabilizing local markets.

This resurgence marks a significant turning point in Africa's energy landscape, signaling a new era of growth and transformation for the continent.

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