West Africa’s refining capacity risks shortfall over infrastructure — Verheijen

… says Tinubu positions Nigeria as West Africa’s energy hub

West Africa’s growing refining capacity could fail to deliver its full economic value unless countries address infrastructure gaps, improve price transparency and strengthen regulatory coordination across the region, the Presidency has warned.

The Special Adviser to the President on Oil and Gas, Olu Verheijen, raised the concern on Tuesday while representing President Bola Tinubu at the Second West African Refined Fuel Market Conference.

Verheijen said the region’s energy challenge had moved beyond the question of whether it had sufficient resources or refining capacity, stressing that the bigger challenge was creating the systems required to move refined products efficiently from producers to consumers.

“A refined product only delivers economic value when it can be financed, stored, transported and distributed reliably,” she said.

She warned that inadequate infrastructure could leave refined products stranded, while opaque pricing could discourage investment by forcing investors to factor uncertainty into their decisions.

“Without infrastructure, supply remains stranded. Without transparent pricing, investors price uncertainty rather than opportunity. Without regulatory coordination, borders become bottlenecks rather than gateways to trade,” Verheijen said.

She described price transparency as more than a reporting mechanism, saying it should be treated as “essential market infrastructure” for the development of a functional regional refined-fuel market.

According to her, West Africa also needs a credible regional benchmark for refined petroleum products, but such a benchmark cannot simply be created through policy declarations.

“A credible regional benchmark cannot be declared into existence. It must be built on actual transactions, reliable data, sufficient market liquidity and confidence in the institutions that support it,” she said.