Ghana and Nigeria prioritize domestic petroleum refining expansion

West African nations Ghana and Nigeria are focusing on expanding domestic petroleum refining capacity to bolster energy security, though both face significant structural challenges.

In Ghana, the push to expand refining, including the reopening and capacity expansion of the Tema Oil Refinery (TOR), aims to mitigate vulnerability to international fuel market disruptions. Experts suggest that the success of Ghana’s strategy depends less on whether refineries are state or privately owned and more on commercial viability, reliable crude supply, and predictable regulatory environments.

In Nigeria, industry stakeholders at the Nigeria Oil Refining Summit warned that expanding downstream capacity could be undermined by inadequate crude production and high feedstock costs. The Crude Oil Refinery-Owners Association of Nigeria (CORAN) and the Independent Petroleum Producers Group (IPPG) emphasized the need to better connect the upstream and downstream sectors. CORAN has proposed a domestic crude pricing template and the institutionalization of a ‘naira-for-crude’ policy to ensure refineries can access feedstock on sustainable commercial terms.