A multinational energy consortium has secured $50 billion in financing to construct what will become Africa’s second-largest oil refinery in Nigeria, a project expected to transform the continent’s downstream energy landscape and bolster Nigeria’s refining capacity.
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, positioning it just behind the Dangote Refinery, which is currently Africa’s largest. The project is being backed by a coalition of investors from the Middle East, Asia, and Europe, working in partnership with the Nigerian National Petroleum Company Limited (NNPC Ltd).
A spokesperson for the consortium said the project aims to reduce Nigeria’s reliance on fuel imports, create tens of thousands of jobs, and stimulate industrial growth across the region. “This refinery represents a new era of energy independence and economic expansion for Nigeria and the wider continent,” the spokesperson noted.
Analysts told Reuters that the new refinery could help stabilize domestic fuel prices, ease foreign exchange pressures caused by fuel imports, and attract further foreign direct investment into Nigeria’s energy sector. The project is scheduled to break ground in mid-2026, with completion expected by 2030, pending regulatory approvals and environmental assessments.
The development underscores Nigeria’s drive to become a refining and export hub for petroleum products in Africa, aligning with broader efforts to diversify its economy and strengthen the oil and gas value chain.
