The age-long traditional oil market structure of Africa would be damaging to the economies of the continent, following the effect of COVID-19. By February 2020 ending, the Africa’s oil market faced three devastating headwinds, especially for crude oil exporting countries – Nigeria, Angola, and Libya in particular. Crude oil sales dropped with falling global demand which equally dragged prices down. With poor storage capacity and lack of good competitive business strategies, the cost of operation shut up wiping every little gain made. The current market structure which has failed the test of today’s pandemic in a huge way has to be replaced with an internally growth supporting market structure. Exporting almost of all of its crude oil while relying entire on almost all of its petroleum products in reverse order cannot stand today’s economic struggles.
FGOG therefore is solidly behind the development of a new normal market structure for African continent. One of the great concerns of FGOG is the unnecessary waste of scarce foreign exchange by some states of the continent in sourcing fuels, while there are many cheaper ways this can be done and save the continent huge foreign currency. We are bold to cite the case of Benin Republic, in its strife to set up an LNG facility where we can supply the country the gas it requires without this needless expensive venture. We are therefore currently taking a continent-wide approach, with planned discussions with the African Union to see how we can reverse the situation.