Nigeria becomes symbol of both hope, frustration in Africa’s energy landscape

(MENAFN) Nigeria, home to the massive Dangote Petroleum Refinery—one of the world’s largest with a capacity exceeding 600,000 barrels per day—has become a symbol of both hope and frustration in Africa’s energy landscape. Despite being celebrated across global media for its scale and ambition, the project has faced numerous setbacks, from bureaucratic delays to pricing disputes with the Nigerian government.

Spearheaded by billionaire Aliko Dangote, the $20 billion facility was envisioned as a solution to Nigeria’s chronic fuel shortages. Since its official launch in May 2023, it has drawn praise from regional bodies like ECOWAS, which dubbed it a "beacon of hope," and from President Bola Tinubu, who described it as a “great phenomenon of our time.”

Yet, the refinery also illustrates the broader structural issues plaguing many African economies—particularly the struggle for industrial self-sufficiency and economic resilience. Fuel is a cornerstone of modern economies, powering transportation, industry, and infrastructure. But while Africa exports around 4.7 million barrels of crude oil daily, it still imports about 2.8 million barrels of refined petroleum each day, costing roughly $100 billion annually.

Nigeria, despite being one of the world’s largest crude exporters and an OPEC member, was until recently importing about 500,000 barrels of refined fuel per day. The country once had a thriving refining sector, peaking in the 1970s and 1980s. However, liberalization and market reforms in the 1990s and 2000s led to a sharp decline. Refineries became outdated, and for years, efforts to attract foreign investment for modernization fell flat.

The Dangote Refinery is now seen as a critical step toward reversing this trend—but it also highlights how even resource-rich nations can find themselves trapped by structural inefficiencies and reliance on foreign markets for essential products.

MENAFN21062025000045015687ID1109703330