A gradual shift is unfolding across Sub-Saharan Africa’s (SSA) energy sector after decades of exporting raw crude and importing finished petroleum products.
Many countries on the continent exported crude oil only to import refined petroleum products at higher costs, which is draining foreign exchange and exposing their economies to global supply shocks.
There is positive news unfolding now. Insights from the latest newsletter by the Public Interest and Accountability Committee (PIAC) reveal that the narrative is steadily changing.
PIAC says the region is moving deliberately from import dependence toward refining strength and product self-sufficiency.
A Structural Shift in Motion
Across SSA, petroleum consumption has been rising alongside urbanisation, industrialisation, and population growth. Yet refining capacity has historically lagged, forcing countries to rely heavily on imported finished products.
That imbalance is now being corrected through strategic investments in refining infrastructure, plant rehabilitation, and cross-border gas integration projects.
Nigeria’s Refining Revolution: A Continental Game Changer
PIAC says at the heart of the shift is Nigeria’s massive 650,000-barrel-per-day Dangote Refinery. This is the largest single-train refinery in Africa.
Now operational, PIAC reveals that the refinery has already begun reshaping regional trade flows. Its scale alone has the potential to reduce Africa’s reliance on European fuel imports
It also has the potential to lower freight and insurance costs for petroleum products and stabilise regional fuel supply. It will also propel the intra-African petroleum trade.
With this mega-refinery, PIAC is hopeful that for the first time in decades, West Africa can realistically envision meeting a significant portion of its own refined fuel demand.
Ghana’s Refinery Revival
Ghana, a major player in Africa’s energy sector, is also making headway. According to PIAC, refinery rehabilitation efforts are gathering pace.
The Tema Oil Refinery (TOR) is undergoing maintenance and operational upgrades aimed at restoring throughput levels. A key improvement, PIAC says, is the installation of a new furnace, which is expected to increase processing capacity and stabilise output.
Meanwhile, efforts are underway to enhance operational efficiency and reduce reliance on imported refined products. For PIAC, these upgrades matter. Every additional barrel refined locally means fewer dollars spent on imports and more value retained within the domestic economy.
In addition, the country’s Petroleum Hub project is gradually taking shape.
Gas Infrastructure Strengthening Power and Industry
Beyond refining, gas infrastructure integration is playing a transformative role in Ghana’s efforts. The West African Gas Pipeline continues to facilitate cross-border gas supply, linking Nigeria’s gas reserves to Ghana and other markets.
This pipeline supports thermal power generation and industrial activity, lowering energy costs and enhancing reliability.
Complementing this is N-Gas Limited, which supplies gas to Ghana’s thermal plants, reducing dependence on more expensive liquid fuels.
Gas availability, experts say, strengthens electricity supply, since affordable power remains the backbone of industrialisation.
Other African countries, apart from Ghana and Nigeria, are taking steps to transition from raw export to refinery.
Why This Transformation Matters
The implications of these changes extend beyond the petroleum industry. The transformation is expected to result in foreign Exchange Savings since reduced fuel imports ease pressure on national currencies.
Critical to this transformation is job creation. PIAC maintains that refineries and gas projects create technical and industrial employment.
Africa’s energy security is expected to be enhanced as local processing reduces vulnerability to global supply disruptions. The transition is a major boost for regional trade since Africa trades more refined products within the continent.
“Africa’s petroleum sector is currently navigating a period of structural realignment, as it transitions from its historical role as a primary exporter of crude oil to an emerging industrial hub for refined petroleum products. This shift is driven by massive capital investments and a strategic push for energy sovereignty across major petroleum-producing nations,” PIAC noted.
From Crude Exporters to Value Creators
For decades, Africa exported crude oil and imported finished fuel, effectively exporting jobs and importing inflation.
The continent is currently rewriting its story in the energy space.
With large-scale refining capacity in Nigeria, operational stability in Côte d’Ivoire, refinery rehabilitation in Ghana, expanded gas infrastructure, and corporate reforms across the sector, SSA is laying the foundation for a more self-sufficient and competitive petroleum industry.
