West African energy regulators face growing pressure to harmonise refinery standards and investment frameworks as the region prepares for a surge in energy demand over the next two decades. Anibor Kragha, Executive Secretary of the African Refiners and Distributors Association (ARDA), emphasized that predictable and transparent regulations are essential to attract financing for refineries, pipelines, and storage infrastructure across West Africa. With Nigeria expected to become the world’s third most populous country by 2050, expanding domestic refining capacity is critical to meet rising demand for petrol, diesel, jet fuel, and LPG.
Speaking on behalf of ARDA’s 80 members, including refiners, marketers, distributors, and regulators, Kragha highlighted the importance of value retention within Africa. He argued that bankable regulatory frameworks are key to encouraging long-term investments in midstream and downstream projects. The African Energy Bank, a new regional financing body, requires projects to demonstrate regulatory protection, thorough preparation, and strong environmental, social, and governance (ESG) commitments, a move designed to strengthen investor confidence.
Kragha pointed to major Nigerian assets, such as the Dangote Refinery and Indorama Eleme Petrochemicals, as transformative for regional fuel supply. By increasing in-continent refining, West Africa can reduce reliance on imported fuels, shield economies from global shocks, and boost intra-African trade. Central to these efforts is the West Africa Regulators Forum (WARF), tasked with harmonizing fuel specifications, environmental standards, and market rules to facilitate seamless cross-border trade in refined products.
The regulatory push also anticipates global decarbonisation mandates, including the International Maritime Organisation’s net-zero shipping target by 2050 and the International Civil Aviation Organisation’s drive for sustainable aviation fuels. Kragha stressed that West African ports and airports must prepare regulatory pathways for alternative fuels like methanol, ammonia, hydrogen, and sustainable aviation fuels to remain competitive. He called for “refining hubs of the future” built on regulatory certainty, integrated infrastructure, and open markets that support both energy security and the continent’s energy transition goals.
However, Africa’s fuel regulation landscape remains fragmented, undermining public health and regional trade. Diesel and gasoline are allowed across a wide range of sulphur grades, from 10ppm to 10,000ppm, leading to fuel dumping and pollution. Despite the Clean Fuels Roadmap aiming for harmonised 10ppm AFRI-6 standards by 2030, regulatory delays at the African Union Commission have stalled progress. Kragha warns that without urgent harmonisation, West Africa risks continued reliance on dirty fuels, structural regulatory failures, and missed opportunities to create a sustainable, continent-wide energy market.
source: The Guardian