Consortium to Build $50 Billion Refinery in Nigeria, Boosting Africa’s Energy Independence
A multinational energy consortium has secured $50 billion in financing to develop a major oil refinery in Nigeria — a facility set to become the second-largest in Africa and a key milestone in the continent’s quest for energy self-sufficiency.
According to Bloomberg, the refinery will be located in Nigeria’s Niger Delta region and will have a planned capacity of 500,000 barrels per day, ranking just behind the Dangote Refinery, currently the largest in Africa. However, it is unclear at this time which of the nine states in the Niger Delta that it would be located in.
The project is being championed by investors from Asia and Europe in partnership with the Nigerian National Petroleum Company Limited (NNPC Ltd).
Speaking on the development, a spokesperson for the consortium said the refinery is designed to significantly reduce Nigeria’s dependence on imported petroleum products while creating tens of thousands of jobs and spurring regional industrialisation. “This refinery represents a new era of energy independence and economic expansion for Nigeria and the wider continent,” the spokesperson stated.
Energy analysts told Reuters that the facility could help stabilise domestic fuel prices, ease foreign exchange strain caused by import bills, and attract new streams of foreign direct investment into Nigeria’s downstream oil and gas sector.
Construction is expected to commence by mid-2026, with completion targeted for 2030, subject to regulatory approvals and environmental clearances.
The initiative reinforces Nigeria’s ambition to become a leading refining and export hub for petroleum products in Africa, in line with national efforts to diversify the economy and enhance value across the oil and gas chain.
With BUA’s 200,000bpd refinery set to come on stream soon, Dangote’s planned expansion to 1.4 million bpd, NNPC Limited’s ongoing rehabilitation of its 445,000bpd refineries, and several modular refineries—some already operational and others in development—Nigeria is on the path to becoming a net exporter of refined petroleum products.
