Executive Secretary of the African Refiners and Distributors Association (ARDA), Anibor Kragha, has called for a strategic approach to address Nigeria’s energy security challenges, emphasising the need for regional cooperation, market-driven pricing, and infrastructure development.
Speaking on Tuesday in Lagos at summit which brings crude oil refiners together, Kragha said harnessing the advantage in the petrochemical sector in Nigeria can reduce the yearly $1.8 spent on plastic importation.
Kragha outlined key measures that could position Nigeria as a regional hub for energy and petrochemical production, while also supporting global efforts to reduce carbon emissions.
Kragha highlighted that Nigeria’s energy challenges are shared by many African countries and could be tackled by fostering harmonised regional regulations, market-based pricing for fuel products, and eliminating infrastructure bottlenecks to mitigate supply chain risks.
He pointed to Nigeria’s growing refining capacity and waterborne supply delivery points as key assets that could be leveraged in the short term to enhance energy security.
“Nigeria’s expanding refining options and the diversity of waterborne delivery points provide advantages that must be harnessed to address supply shortfalls and reduce dependence on imports,” Kragha stated.
Kragha said the petrochemical sector is a potential gamechanger for Nigeria’s economy.
With key projects such as the Indorama and Dangote petrochemical plants already in place, Nigeria is positioned to become a regional leader in petrochemical production. The drive for value addition via petrochemicals, he noted, will not only boost the economy but also help reduce emissions by curbing flaring and minimising the carbon-intensive shipping of raw materials and finished products.
“Currently, Nigeria continues to flare or export significant quantities of feedstocks like methane and natural gas liquids (NGLs), which could otherwise be processed into valuable petrochemical products. For example, 300-400 kt of propane is exported annually, with about 50% sent to China for processing,” Kragha remarked.
In contrast, Nigeria imported approximately $1.82 billion worth of plastics in 2023, highlighting the untapped potential for domestic production and the economic benefits of reducing dependency on imports.
As global aviation seeks to reach net-zero emissions by 2050, Kragha stressed the importance of Sustainable Aviation Fuel (SAF) in achieving this goal. Nigeria, with two of Africa’s top 10 airports (Lagos and Abuja), could play a significant role in producing SAF, especially by utilising existing refinery infrastructure for co-processing opportunities.
“Aviation emissions are difficult to abate, and SAF presents the largest source of emissions reductions in the sector’s quest for net-zero,” Kragha noted, adding that most SAF is currently produced in Europe and the U.S., with the HEFA (Hydrotreated Esters & Fatty Acids) process being a key method.
Kragha highlighted the increasing number of players in Nigeria’s refining industry, with companies such as Waltersmith, Aradel, and OPAC joining NNPCL’s refining assets. Additionally, ongoing rehabilitation efforts at the Port Harcourt and Warri refineries are expected to further strengthen the country’s refining capacity, although final timelines for start-up will depend on crude availability.
The Dangote Refinery (DR), which has enhanced fuel supply flexibility with its waterborne and into-truck capabilities, has also accelerated Nigeria’s fuel quality improvement programme, aligning with ARDA’s push for cleaner AFRI-6 fuel standards across Africa.
Despite the progress in refining, Nigeria continues to face fuel supply challenges, with a shortfall in gasoline linked to credit issues and smuggling contributing to scarcity at the pumps. The surge in LPG prices has also led many consumers to revert to charcoal and wood for cooking, exacerbating environmental concerns.
Kragha noted that, like many African nations, Nigeria is attempting to shield consumers from the rising cost of living by stabilising gasoline prices, although this policy does not extend to diesel or LPG.
Kragha concluded by urging stakeholders to continue investing in Nigeria’s energy infrastructure, particularly in refining, petrochemicals, and SAF production, to position the country as a leader in Africa’s energy transition. He also emphasised the importance of collaborative efforts to reduce emissions, end flaring, and harness Nigeria’s vast natural gas resources for sustainable development.
“Nigeria has the potential to become a major petrochemical hub, and with the right investments and regulatory frameworks, we can significantly reduce harmful emissions while creating economic value,” Kragha said.
As Africa’s population grows, with Nigeria expected to be the world’s third most populous country by 2050, the focus on energy security, infrastructure development, and sustainability will be critical in meeting the continent’s rising energy demands.
