Africa loses an estimated $15 billion in value added each year by exporting most of its crude oil without refining it locally, according to Farid Ghezali, Secretary General of the African Petroleum Producers’ Organization (APPO). He made the disclosure during the ninth Nigerian International Energy Summit, held from February 1 to 5, 2026.
Ghezali highlighted that Africa exports about 70% of its crude oil and 45% of its natural gas in raw form due to inadequate processing infrastructure. This situation curtails job creation and limits economic opportunities for the continent’s rapidly growing population.
“The challenge is not only to extract, but to transform these resources into shared wealth,” Ghezali said.
Financing remains a major obstacle for energy projects in Africa. Over 150 critical projects—including refineries, pipelines, and gas infrastructure—remain stalled due to high financing costs, which reach 15% to 20% in Africa compared with 4% to 6% in Asia. Fragmentation among the 18 national oil companies in APPO further limits regional synergies and constrains access to large-scale capital.
Meanwhile, Africa spends over $120 billion annually importing refined petroleum products and hydrocarbon-related services, emphasizing the economic cost of exporting raw commodities.
“If Africa can retain part of this spending through local value addition, the economic impact would be transformative,” said Heineken Lokpobiri, Nigeria’s Minister of State for Petroleum.
Gambian President Adama Barrow stressed that Africa must align hydrocarbon development with renewable energy expansion and climate justice while ensuring accessible financing mechanisms.
To address the financing gap, APPO has endorsed the creation of the African Energy Bank, set to launch in Abuja in the first half of 2026. The institution aims to mobilize $200 billion by 2030 for hydrocarbon transport and processing projects and raise $15 billion within three years through listings of national oil companies.
Nigerian authorities, hosting the summit and holding 37 billion barrels of oil and 209 trillion cubic feet of gas reserves, reaffirmed their readiness to lead Africa’s energy transformation. They warned that failure to mobilize financing would exacerbate energy and social poverty across the continent.
The summit highlighted that Africa’s ability to develop refineries and infrastructure will determine its capacity to turn natural resources into industrial growth and shared wealth, reversing the annual $15 billion loss caused by raw exports.
