Africa's Richest Man Plans Second Oil Refinery in Kenya

The businessman who launched Nigeria's only operational oil refinery in 2024 has announced plans for a second large refinery in East Africa. The new facility would be modeled on the $19 billion project in Lagos State and is projected to cost between $15 billion and $17 billion.

Construction would target Mombasa, Kenya, which the businessman cited for its deeper port and larger economy compared with Tanzania's Tanga port. The announcement comes after global oil prices rose and supplies were disrupted when the Strait of Hormuz was closed.

About 20 percent of the world's oil and natural gas passes through the strait. West, South and East African countries rely primarily on imports of refined petroleum products from the Middle East and have been seeking ways to improve energy security.

Nigeria's refinery began selling large volumes of refined products across the continent as the conflict escalated in March. By the end of March the facility, which can process 650,000 barrels per day, was also receiving orders from outside Africa, particularly for jet fuel after hundreds of flights were cancelled in various regions.

Neighbouring countries including Cameroon, Togo, Ghana and Tanzania have turned to the Nigerian refinery as Middle East supplies tightened.

Nigeria, Africa's largest oil producer, has had no functional state-owned refinery and had not refined oil meaningfully since 2019. The new facility has positioned the country to become a net exporter of jet fuel and diesel. African countries refine only about 44 percent of the oil they consume, according to a 2022 African Union report, with the remainder imported.