Africa loses about $15 billion annually by exporting up to 70 per cent of its crude oil and 45 per cent of its natural gas instead of processing them locally, the African Petroleum Producers Organisation (APPO) has said.
The Secretary-General of APPO, Farid Ghazali, disclosed this at the 9th Nigeria International Energy Summit (NIES) in Abuja, noting that the continent could generate more value through midstream and downstream development.
Ghazali said financing remained the major obstacle to the execution of over 150 strategic projects across Africa, including refineries, pipelines and gas infrastructure such as the Ajaokuta–Kaduna–Kano (AKK) pipeline.
According to him, the cost of financing in Africa ranges between 15 and 20 per cent, compared to 4 to 6 per cent in Asia, a disparity he described as unacceptable and a major constraint to progress.
He also pointed out that the continent’s energy financing ecosystem was fragmented, with 18 national oil companies operating largely in isolation without a common stock exchange, thereby limiting regional collaboration and capital attraction.
To address the challenge, Ghazali said APPO was working to establish the African Energy Bank (AEB), aimed at unlocking about $200 billion for midstream and downstream projects by 2030.
He explained that the AEB would serve as a pan-African platform for equipment exchange, energy services and innovative financing, while encouraging countries to produce and refine what they consume.
The bank is expected to allow the listing of shares of national oil companies and major projects, including the Dangote Refinery and the AKK pipeline, with a target of raising $15 billion within three years.
Ghazali said the initiative would also unify intra-African pricing for oil and gas, enabling member states to save up to 30 per cent on energy imports—equivalent to about $1.4 billion across the continent.
He added that the bank would connect certified African projects with global sovereign wealth funds and capital markets through green bonds and public-private partnerships.
According to him, by 2030 the AEB aims to mobilise $200 billion to support Africa’s gas transition, create about 500,000 direct jobs and boost investor confidence in the continent’s energy sector.
Ghazali commended Nigeria’s local content drive, citing the Nigeria Content Development and Management Board’s $5 billion local contract achievements and the successful financing of the Dangote Refinery as proof that African projects can attract capital under the right conditions.
