The Managing Director/Chief Executive Officer of Renaissance Africa Energy, Tony Attah, has said that the continued export of crude oil while refined petroleum products are imported contradicts Nigeria’s local content goals and limits value creation within the country.

Attah spoke on Thursday at an online lecture organised by the Nigerian Content Academy of the Nigerian Content Development and Monitoring Board on the topic, ‘Finding Funds For Effective & Efficient Local Content Initiatives – IPPG Perspective’.

He criticised the traditional model adopted by international oil companies, noting that crude oil is produced in Nigeria and exported, while the value from refining is created in other countries.

According to him, the prevailing system reflects the characteristics of an extractive industry, where resources are taken out without building domestic capacity for processing and industrial development.

“But what do we do today with the business model that the IOC has had? They produce and take the crude out. That’s why it’s called an extractive industry. But they take the crude out and create value in their respective countries,” he said.

Attah said the adoption of a similar model by independent oil producers undermines local content policy. Attah explained that the practice of exporting crude for foreign refineries to process is inconsistent with the objectives of Nigerian content development, which seeks to build capacity and encourage in-country value addition.

Attah said there is a transformation as local firms gradually take over the nation’s energy sector. He recalled how Renaissance Africa lowered Shell’s flag to fly its own after the divestment that took place in 2024. He also commended the Dangote refinery, saying the plant has led to the shutdown of various refineries in Europe.

“So, to expect the transformation that I referred to with Nigerian independence taking over, to continue with that model of — ‘produce and take the barrels out for someone else to create value’ — is not consistent with the Nigerian content where we are looking to create capacity and domestication in-country. That is why I feel very proud of Aradel and Waltersmith refineries and, in fact, even more so with the one Dangote has built.

“The Dangote refinery has disrupted the entire world. If you Google it, you will see how many refineries are shut down in Europe just because of one man’s dream, one man’s ambition, which, when you speak to him, he tells you about the belief. But he will tell you that there were several times in the course of pushing that ambition that he doubted himself, but he just had the courage to keep going,” he said.

He noted that local refining offers a more sustainable path for economic growth, as it enables Nigeria to capture greater value from its resources and strengthens domestic industrial capabilities.

Attah also expressed pride in emerging local refining initiatives, which he said demonstrate the benefits of processing crude domestically rather than exporting it in raw form.

Beyond refining, he emphasised the need for a balanced energy mix, stating that while renewable energy is important, it cannot alone meet Africa’s growing energy demand. He noted that global events, including geopolitical conflicts, have exposed the fragility of energy systems and highlighted the continued relevance of fossil fuels in ensuring energy security.

Attah said energy has always been in transition, evolving from manpower to kerosene, crude oil, gas, and now renewables, stressing that Africa must adopt a pragmatic approach that incorporates multiple energy sources.

He warned that Nigeria’s rapidly growing population would significantly increase energy demand, noting that the country’s population is projected to rise from over 200 million to more than 400 million by 2050.

The Renaissance Africa Energy chief also highlighted the gap between Nigeria’s population and power generation, observing that more than 200 million people rely on roughly 5,000 megawatts of electricity. He suggested that distributed energy solutions such as solar panels, batteries and inverters at the household level could help bridge supply gaps over time.

On financing local content initiatives, Attah stressed that investors prioritise governance structure, clarity of business model, and risk management. He explained that financiers typically require equity contributions, strong collateral, and credible project structures before committing funds.

According to him, Africa must also develop its own financing capacity, as reliance on external funding often leaves projects vulnerable during global economic shocks. He pointed to the creation of an African energy financing institution as a step towards addressing funding challenges on the continent.

Attah added that companies seeking investment must demonstrate bankability, cost efficiency, and strong governance to attract capital. He also urged African countries to strengthen intra-continental trade, noting that the continent often does more business with external markets than within itself.

Attah said building domestic refining capacity and strengthening local content initiatives would help Africa retain value, create jobs, and enhance energy security.