According to research, Nigeria might by 2025 become the largest oil-refining hub in Africa. This information was provided in a recently released report by the Pan-African financial research firm Hawilti titled “Refineries watch Q4 2022.”
The paper added that West Africa has the highest refining capacity on the subcontinent, but that only 23% of it is now active, and that Africa is poised to see dramatic changes in the security of its fuel supply by 2023. The possibility of a new private refinery going into operation in Nigeria, according to the research, might contribute to redefining the country’s domestic refining capacity.
By 2025, Nigeria could become the continent’s largest hub for refining thanks to the Dangote refinery’s launch as well as the restoration of state-owned refineries, the report stated. The document added that the market is also driven by private oil producers and asset developers who are building modular refineries next to oilfields in the Niger Delta.
It added that its commissioning is already sending hopes that it could finally start rebalancing Nigeria’s trade deficit. “Africa’s biggest oil producer has also embarked on the rehabilitation of its three state-owned refineries in Port Harcourt, Warri, and Kaduna totaling some 445,000 bpd of refining capacity.