The federal government has expressed concern over Africa’s estimated $120 billion annual expenditure on imported refined petroleum products, describing it as a major drain on the continent’s economy and a missed opportunity for industrial growth.
Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, made the remarks during his ministerial address at the Nigerian International Energy Summit (NIES) in Abuja. He noted that the high import bill, largely driven by refined petroleum products and hydrocarbon-related services, represents not just a financial loss but also a setback to Africa’s economic transformation.
To address this, the federal government is supporting the Dangote Refinery, which is expected to capture about 20% of the African refined petroleum market, retaining value and promoting local industrial participation.
“The core idea is simple: if Africa can retain a proportion of that spending through local value addition, infrastructure development and industrial participation, the economic impact would be transformative,” Lokpobiri said.
He also stressed the importance of continental support for the African Energy Bank (AEB), headquartered in Nigeria, warning that Africa’s energy challenges could worsen without mobilising adequate resources internally.
