• Africa loses about $15 billion annually by exporting most of its crude oil without local refining.

• The continent exports about 70% of its crude oil and 45% of its natural gas due to limited processing capacity.

• Africa spends more than $120 billion a year importing refined petroleum products and hydrocarbon-related services.

Africa loses about $15 billion in value added each year because it exports most of its crude oil without refining it locally. Farid Ghezali, secretary general of the African Petroleum Producers’ Organization, disclosed the figure during the ninth Nigerian International Energy Summit held from February 1 to 5, 2026.

Africa exports about 70% of its crude oil and 45% of its natural gas in raw form due to insufficient processing infrastructure, Ghezali said. This situation prevents job creation and limits economic opportunities for a rapidly growing population.

“The challenge is not only to extract, but to transform these resources into shared wealth,” Ghezali said.

Financing represents the main obstacle to energy projects across the continent. More than 150 critical projects, including refineries, pipelines, and gas infrastructure, remain stalled in Africa, Ghezali said.

Project financing costs reach 15% to 20% in Africa, compared with 4% to 6% in Asia. These higher costs reduce the economic viability of industrial energy projects, Ghezali said.

Ghezali also pointed to fragmentation in Africa’s energy financing system. The 18 national oil companies that belong to APPO operate without a shared financial market.

This fragmentation limits regional synergies and constrains the ability to attract large-scale capital.

At the same time, Africa spends more than $120 billion annually importing refined petroleum products and hydrocarbon-related services.

“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 said Africa must align hydrocarbon development with renewable energy expansion and climate justice. He said the global energy transition must include accessible financing mechanisms for Africa.

A pan-African financial architecture to move beyond raw exports

Against this backdrop, APPO has backed the creation of the African Energy Bank. Authorities plan to launch the institution in Abuja in the first half of the year.

The bank aims to serve as a pan-African platform for financing and energy services. The institution plans to mobilize $200 billion by 2030 for hydrocarbon transport and processing projects.

The bank also aims to raise $15 billion within three years through listings of national oil companies.

Nigerian authorities warned that failure to mobilize financing would worsen energy and social poverty in the region. Nigeria hosts the summit and holds oil reserves of 37 billion barrels and gas reserves of 209 trillion cubic feet.

The country said it stands ready to play a leading role in transforming Africa’s energy sector in the coming years.

The annual $15 billion loss highlights the economic cost of maintaining a raw commodity export model. Africa’s ability to develop refineries and infrastructure will determine its capacity to convert energy resources into industrial development and shared wealth.

This article was initially published in French by Olivier de Souza

Adapted in English by Ange J.A de BERRY QUENUM