Africa forfeits about $15 billion every year by exporting most of its crude oil and natural gas instead of refining and processing them locally, the African Petroleum Producers Organisation (APPO) has said.
APPO Secretary-General Farid Ghazali disclosed this at the 9th Nigeria International Energy Summit (NIES) in Abuja. He urged African governments to strengthen midstream and downstream investments to capture more value within the continent.
For more on APPO’s initiatives, visit: https://appo-oil.org
Why Africa Is Losing Billions
According to APPO, African countries export nearly:
70% of crude oil
45% of natural gas
This export-heavy model, Ghazali said, limits job creation, weakens industrial growth, and reduces long-term economic gains.
He stressed that local refining, petrochemical production, and gas processing would significantly increase revenue retention and strengthen energy security.
Financing Remains the Biggest Obstacle
Ghazali identified high financing costs as the main barrier to executing more than 150 strategic energy projects across Africa.
These projects include:
Refineries
Pipelines
Gas processing plants
The Ajaokuta–Kaduna–Kano (AKK) pipeline
He noted that borrowing costs in Africa range between 15% and 20%, compared to 4% to 6% in Asia. He described the gap as unacceptable and harmful to development.
Fragmented Energy Ecosystem
APPO also highlighted structural weaknesses in Africa’s energy financing system.
Ghazali explained that 18 national oil companies operate largely in isolation. Without a unified capital market platform, these companies struggle to attract cross-border investment and scale regional collaboration.
This fragmentation, he said, limits Africa’s ability to compete globally.
African Energy Bank to Unlock $200bn
To address the funding gap, APPO is working to establish the African Energy Bank (AEB).
Ghazali said the bank aims to mobilise $200 billion by 2030 for midstream and downstream projects. The institution will serve as a pan-African financing hub, encouraging countries to refine and consume more of their own energy resources.
The AEB plans to:
Facilitate equipment exchange and energy services
Promote innovative financing models
Connect African projects with global sovereign wealth funds
Support green bonds and public-private partnerships
The bank also intends to raise $15 billion within three years by listing shares of national oil companies and major projects such as large refineries and pipeline networks.
Potential Economic Gains
APPO estimates that unified intra-African pricing for oil and gas could reduce energy import costs by up to 30%, saving the continent roughly $1.4 billion annually.
By 2030, the African Energy Bank aims to:
Mobilise $200 billion in investment
Support Africa’s gas transition
Create about 500,000 direct jobs
Boost investor confidence in the energy sector
Nigeria Cited as Example
Ghazali commended Nigeria’s local content drive. He referenced the Nigeria Content Development and Management Board’s reported $5 billion in local contract achievements and major privately financed refinery projects as evidence that African energy projects can attract capital under the right conditions.
The Bigger Energy Debate
Energy experts argue that Africa must move beyond raw commodity exports to achieve sustainable development. Expanding refining capacity, strengthening regional cooperation, and lowering financing costs remain critical steps toward industrial transformation.
APPO’s warning adds urgency to ongoing discussions about how Africa can convert natural resource wealth into broader economic prosperity.
