Stakeholders in the oil gas sector have decried the continuous loss of jobs and investment in Africa due to lack of local value addition in crude oil production in the continent.
The experts who spoke during the 9th Nigerian International Energy Summit (NIES) said there is the need to finance refineries in Africa to increase domestic refining of crude oil.
Speaking during the summit yesterday, the Secretary General who is the Chief Executive Officer and principal administrator of African Petroleum Producers’ Organization (APPO), Farid Ghezali, said lack of local value addition is leading to Africa exporting about 70 per cent of its crude oil and 45% of its natural gas.
He said this is causing $15bn loss per year in added value that could have generated jobs and economic opportunities for the teeming population in the continent.
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“Energy is, without a doubt, the engine of peace and prosperity. It lights our homes, powers our industries, creates jobs, and propels us into a brighter future. For Africa, which is rich in energy resources, the challenge is not only to extract, but to transform these resources into real shared wealth for our population,” he said.
He, however, said financing remains the main bottleneck hindering the development of strategic projects in the continent.
“More than 150 essential projects, from refineries to pipelines, such as the AKK pipeline, to gas infrastructure remain blocked. What for? Because the cost of financing in Africa is 15-20% interest compared to only 4 to 6 percent in Asia. This disparity is unacceptable and slows down our progress,” he added.
“In addition, the fragmentation of our energy financial ecosystem is a challenge. Our 18 national oil companies in APPO often operate in isolation without the common stock exchange, which severely limits regional synergies and our collective ability to attract massive capital.”
He said faced with this emergency, APPO has worked tirelessly to forge a resilient African and pragmatic solution, which is called the African Energy Bank.
He said the African Energy Bank, which is scheduled to launch in Abuja in the first half of 2026, is much more than just a financial institution.
‘African Energy Bank to unlock $200bn’
“It is a pan-African platform for the exchange of equipment, energy services and, above all, a catalyst for innovative financing to support a structured African energy project. Because I think it’s time to produce what we are consuming and to consume what we are producing,” he stated.
“The African Energy Bank is designed to unlock the $200 billion needed for our midstream and downstream projects by 2030. And beyond, how are you going to deal with immediate liquidity? The African Energy Bank will unlock the listing of shares of our national companies. Our goal is to raise $15 billion in just three years with this increase in liquidity.”
On his part, the Minister of State for Petroleum (Oil), Sen. Heineken Lokpobiri, said Africa currently spends over $120bn annually on hydrocarbons alone.
He noted that the level of expenditure, primarily on the importation of refined petroleum products and other hydrocarbon-related services, represents not just a financial cost, but a lost opportunity for economic transformation.
“The core idea is this: if Africa can retain a proportion of that spending within the continent through localized value addition, infrastructure development, and industrial participation, the economic impact would be transformative.”
He called on the support of the African Energy Bank (AEB) with its headquarters in Nigeria, stating that failure to mobilize the appropriate resources to solve energy problems in Africa will increase the misery of the increasing population.
“The responsibility is ours and ours alone. As the host country we have fulfilled our obligations, the ball is in the court of the promoters to set the ball rolling. Ultimately, this shift is not merely about energy self-sufficiency, it is about economic sovereignty, industrialization, and inclusive growth. Retaining hydrocarbon value in Africa means creating the fiscal space and investment capacity needed to power critical sectors such as healthcare, education, infrastructure, security and technology.”
Reforms will deliver additional 1m barrels in 2027 – Tinubu
Meanwhile, Nigeria’s President, Bola Ahmed Tinubu, said the gains of the reforms the government has implemented in the oil and gas sector will lead to the production of 2.5 million barrels of crude oil by 2027.
The president who was represented by Vice President Kashim Shetima said through targeted initiatives such as Project 1 Million Barrels per Day, the government is working systematically towards 2.5 million barrels per day by 2027.
“Our long-term national ambition remains clear, 3 million barrels per day of liquid hydrocarbons and 12 billion cubic feet per day of gas by 2030.”
He said the reforms have enabled the country to unlock up to US$10bn in capital inflows, streamline project approvals, reduce bureaucratic delays, and position Nigeria as a prepared investment destination.
“In 2025, we introduced the Offstream Petroleum Operations Cost Efficiency Incentives Order, providing tax credits of up to 20% to promote cost efficiency, enhance competitiveness, and deepen Nigerian participation. As a direct result of the reforms we introduced, Nigeria’s average crude oil production improved to approximately 1.6 million barrels per day.”
The President of the Gambia, Adama Barrow, said the country recognises that energy must be diversified, sufficient, and accessible to all.
He said while fossil fuel continues to play a lead role in supporting development, the long-term sustainability of economies depends on accelerating the deployment of renewable energy, centering regional power pools, and investing in energy efficiency and human capital.
“The continent is uniquely positioned in the global energy mix. Alongside critical minerals essential for clean energy technologies, we possess abundant fossil and renewable resources. The challenge before us is to translate this natural endowment into exclusive growth, local value addition, and decent jobs for our young and growing population. In concert, we must ensure that Africa is not left behind.”
He noted that the global transition to clean energy and just climate ambition must match climate justice, so most financing mechanisms are accessible.
The Minister of State for Petroleum (Gas), Dr. Ekpo Ekperikpe, said natural gas remains central to Nigeria’s energy future.
He said it is Nigeria’s most abundant hydrocarbon resource and most practical instrument for economic transformation.
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“Gas enables reliable power generation, underpins industrial growth, and supports cleaner cooking solutions. Through gas, we are creating jobs, strengthening value chains, reducing energy poverty, and positioning Nigeria as a regional energy hub. Over the past year, Nigeria’s gas sector has recorded measurable and encouraging progress.”
He said in 2025, gas production sustained a clear upward trajectory, with average daily output reaching approximately 7.5 to 7.6 billion standard cubic feet per day. Notably, domestic gas supply exceeded 2 billion standard cubic feet per day for the first time, a historic milestone that underscores our commitment to energy access, industrial growth, and economic transformation.”
The Group Chief Executive Officer of NNPC Ltd, Engr. Bashir Bayo Ojulari, as an emerging global energy powerhouse, Nigeria has the responsibility to utilise its abundant gas resources to power Africa’s rise and contribute meaningfully to global stability.
“Nigeria’s pathway to a prosperous future lies in our collective ability to leverage our resource abundance, especially as gas sits at the heart of our strategy. It is our bridge to a cleaner future, our engine for industrialization, and our foundation for export-led growth”, Ojulari stated.
Describing what he termed as Africa’s energy trilemma, Ojulari said though the African continent is endowed with vast energy resources, it still grapples with issues of accessibility, affordability, and sustainability, with over 600 million Africans living without access to electricity.
He said that with 37 billion barrels of crude oil and 209 trillion cubic feet of gas reserves, Nigeria and the NNPC Ltd are ready to lead the charge in changing the narrative.