Michael Eboh
Dublin, Ireland — African Refiners and Distributors Association (ARDA) have warned that Nigeria and the African continent, in general is dangerously overexposed to fuel imports, putting it at risk of shocks with far-reaching consequences for the continent.
In a report, titled: ‘What If Africa Couldn’t Import Fuel for 30 Days?’, Executive Secretary of ARDA, Mr. Anibor Kragha, disclosed that in the event of any prolonged disruption to fuel imports in Africa, the continent would be thrown into chaos, with its economy grinding to a halt in a matter of days.
Kragha affirmed that Africa is rich in crude oil but suffers from a persistent lack of refining capacity, adding that the continent hosts over 40 refineries, that are mainly outdated, underutilised, or idle.
According to him, Nigeria, Africa’s top oil producer, has a nominal refining capacity of 1.1 million barrels per day, including the new 650,000 bpd Dangote Refinery, but still relies on imports for over half its fuel needs.
He said: “Meanwhile, demand is rising fast. Africa’s population is projected to hit 2.5 billion by 2050, with energy needs expected to double. This dependence on imported refined products undermines economic sovereignty, widens trade deficits, destabilises currencies, and impedes industrialisation. It also threatens the goals of the African Continental Free Trade Area (AfCFTA) by reinforcing external dependencies rather than building internal resilience.”
The former chief operating officer in charge of refining at the Nigerian National Petroleum Corporation Limited (NNPCL), warned that a 30-day halt in fuel imports across Africa would trigger large fuel queues across Lagos, Johannesburg, Kinshasa, Cairo, and Nairobi.
He further stated that planes would be grounded, trucks immobilised, hospitals thrown into darkness, cities in chaos; while the continent’s economic engine would grind to a halt.
He added that millions of tonnes of goods, medicines, and food would be stranded in warehouses and ports, unable to move, while critical infrastructure would fail as diesel-powered generators, essential to hospitals, telecommunication towers, water systems, and banks, shut down, while billions of dollars in revenue would be lost within days.
He said: “This is not a worst-case scenario exaggerated to cause alarm. It’s a strategic blind spot hiding in plain sight. Despite producing more than five million barrels of crude oil daily, the continent still imports over 70 per cent of its refined petroleum products. The truth is, this dependence leaves Africa dangerously overexposed.”
Kragha disclosed that a coordinated, continent-wide response is required to address the imbalance of over-reliance on fuel imports, despite huge oil output in the continent.
He said: “To avert the economic paralysis that a sudden halt in fuel imports would trigger, ARDA is leading a continental strategy focused on five pillars: upgrading and scaling refining capacity through resilient, commercially viable projects.
“Harmonising fuel specifications and regulations to unlock intra-African trade. Attracting investment through transparency, bankable projects, and risk mitigation frameworks. Developing infrastructure – pipelines, depots, storage terminals, LPG bottling plants and logistics networks; and building human capital in regulation, engineering, finance, and operations.”
Kragha added that ARDA has already initiated moves aimed at expanding access to clean Liquefied Petroleum Gas (LPG) in households and underserved regions, targeting the creation of jobs for millions, while reducing dependence on biomass.
However, he noted that this transformation will not happen through advocacy alone, adding that it demands urgent, coordinated action.
This article was originally posted at sweetcrudereports.com
Be the first to comment