The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) called on AfCFTA trade authorities to dismantle cross-border tariffs and non-tariff barriers affecting Nigerian refined petroleum. The union emphasised that unrestricted access for Dangote Refinery products across Africa will bolster continental energy security.
The call reflects the growing importance of the Dangote Refinery to Nigeria’s economy and the continent’s energy security. The refinery has the capacity to supply refined products across Africa, but trade barriers have limited its reach. PENGASSAN’s intervention is a recognition that the AfCFTA must deliver on its promise of free trade if the continent is to benefit from its resources.
This echoes the 2020s push for African free trade, which has seen several initiatives aimed at reducing trade barriers. The mechanism then was different, but the result was the same: a focus on the potential of the AfCFTA.
The winners: Dangote Refinery, which would gain access to new markets; and African consumers, who would benefit from cheaper refined products. The losers: refiners in other African countries, who face competition; and the Nigerian government, which must advocate for the removal of barriers.
Bottom Line: PENGASSAN wants trade barriers removed for refined petroleum. The AfCFTA’s potential depends on implementation. The question is whether the barriers will fall or remain.