Africa’s refining crisis is often framed as a lack of infrastructure, but it is just as much a problem of underutilization.Despite holding around 12% of global crude reserves, the continent still imports more than 70% of its refined fuel, as existing refineries continue to operate far below capacity. Aging equipment, inconsistent maintenance and limited financing have left assets across Nigeria, Libya and beyond running at a fraction of their potential.
Venezuela has spent the past decade confronting a strikingly similar challenge. Once home to one of the world’s most advanced refining systems, the country saw utilization collapse before gradually recovering to around 31–35% – roughly 400,000–450,000 barrels per day – through incremental fixes rather than large-scale investment. That modest recovery offers a useful lens for Africa, where full refinery overhauls are often financially out of reach.
At the center of Venezuela’s system is the Paraguaná Refining Center, responsible for more than 70% of national capacity. Designed to process close to one million barrels per day, the complex has been constrained by recurring power outages, maintenance challenges and difficulties keeping interconnected units operating in sync – limiting overall output even when individual components are online.
Across Africa, refineries from Nigeria to Libya face the same structural challenge: large nameplate capacities, but persistently low utilization rates. In February 2026, the Nigerian National Petroleum Company halted operations at Nigeria’s state-owned refineries as utilization hovered around 50–55% – a mismatch that was driving “monumental losses.” Libya presents a similar picture. The country operates five refineries with a combined capacity of 380,000 barrels per day, yet actual output is closer to one-third of that level, reflecting damage sustained during past conflict and slow progress on rehabilitation.
Venezuela’s experience shows that the challenge is less about building new refineries and more about sustaining and rehabilitating existing ones. Take the El Palito refinery. With a capacity of around 140,000 barrels per day, operations have been repeatedly disrupted by fires and technical failures. Its fluid catalytic cracking (FCC) unit – critical for gasoline production – has been a persistent weak point. Recent efforts to restart the unit, even at limited capacity, have helped offset outages elsewhere and stabilize fuel supply, underscoring the impact of targeted interventions.
“This is where emerging cooperation frameworks, including engagement between the African Energy Chamber and Venezuela’s state oil company, PDVSA, are gaining relevance,” says NJ Ayuk, Executive Chairman, African Energy Chamber, adding that the value lies less in exporting a model and more in sharing practical experience.
“Venezuela has been forced to operate under constraint – restarting units without full overhauls, sourcing parts creatively and prioritizing incremental gains,” he says.
Such cooperation could support rehabilitation efforts by focusing on technical problem-solving rather than capital-intensive transformation. In an environment where financing remains tight, this type of operational knowledge transfer may prove more immediately impactful than large-scale project development.
That said, Venezuela also highlights what to avoid. Years of underinvestment and operational mismanagement played a central role in the decline of its refining sector. Any lessons must be applied selectively, with a stronger emphasis on maintenance, governance and long-term planning.
For Africa, the priority is clear: not just expanding refining capacity, but improving the performance of existing assets. Many facilities have the potential to operate far more efficiently with the right technical focus and sustained investment. Venezuela is unlikely to provide a complete solution to Africa’s refining challenges, but its experience reinforces a more practical takeaway – restoring output is achievable, even in constrained environments, when efforts are focused on targeted rehabilitation and operational discipline.
