The Chairman of the OTL Africa Downstream Energy Week Advisory Board, Otunba Adetunji Oyebanji, has warned that rising shipping costs, financing constraints and disruptions to international petroleum trade could undermine Africa’s fuel supply security despite growing refining capacity across the continent.

Oyebanji raised the concern on Monday in Lagos while delivering his welcome address at the opening of the 20th anniversary edition of OTL Africa Downstream Energy Week 2026.

He said developments in the Middle East, insecurity along major shipping routes and disruptions affecting Russian petroleum supplies were creating additional challenges for African fuel markets.

According to him, the pressures are increasing the cost of importing petroleum products, raising the amount of money businesses need to finance transactions and making delivery schedules less predictable.

Citing the International Energy Agency’s October assessment, Oyebanji drew attention to continued pressure on global diesel supplies and exceptionally high freight costs.

He explained that ensuring adequate petroleum supply now requires more than access to crude oil or investment in refining facilities, as shipping arrangements, insurance and financing have become equally important.

“Access to suitable tankers, insurance, trade finance and reliable supply partners can determine whether products arrive when they are needed,” he said.

Oyebanji acknowledged that Africa had made significant progress in expanding its downstream petroleum industry, particularly through investments in refining, storage and transportation infrastructure.

He identified Nigeria’s Dangote Refinery as one of the developments changing the outlook for domestic petroleum supply and regional trade.

However, he cautioned that additional refining capacity would only deliver meaningful benefits if operators could secure adequate feedstock, maintain efficient production and establish reliable distribution networks.

He noted that several African markets remained heavily dependent on imported petroleum products, while uneven infrastructure and foreign exchange constraints continued to limit trade.

The chairman also stressed that investment in petroleum infrastructure had not consistently translated into affordable energy for consumers.

Reflecting on two decades of downstream development, Oyebanji highlighted improvements in petroleum infrastructure across Ghana, Kenya, Egypt, South Africa and Angola as evidence of the continent’s growing ability to strengthen its supply systems.

He maintained that these investments must be supported by reliable transportation links and regulatory frameworks that encourage investment and facilitate cross-border petroleum trade.

Oyebanji further observed that the growing importance of cleaner fuels, natural gas, renewable energy and changing transportation patterns would require African countries to adopt energy strategies suited to their economic circumstances.

He urged governments and industry operators to prioritise commercially sustainable investments that improve energy access, strengthen supply reliability and support economic development.

The 2026 OTL Africa Downstream Energy Week, themed, “Secure Energy, Shared Prosperity,” brings together policymakers, regulators, investors and industry operators to examine challenges and investment opportunities across Africa’s downstream and midstream energy sectors.

The conference will feature discussions on refinery competitiveness, feedstock supply, regional petroleum trade, competition, energy finance, shipping logistics and emerging energy alternatives.