Ghana’s downstream petroleum regulator is calling for greater harmonisation of oil and gas regulations across African markets, arguing that fragmented licensing requirements, technical standards and compliance procedures could undermine investment and limit the benefits of regional energy trade.
Godwin Kudzo Tameklo, Chief Executive of the National Petroleum Authority (NPA), made the case during a panel discussion on regulatory convergence at the 20th OTL Africa Downstream Energy Week in Lagos, Nigeria, where he urged governments and industry regulators to strengthen cooperation across national borders.
His position highlights a challenge facing Africa’s downstream petroleum industry: although regional markets offer opportunities for expanded trade and investment, differences in regulatory systems can complicate cross-border operations and increase the cost of doing business.
For investors considering refineries, storage facilities, fuel distribution networks and other petroleum infrastructure, regulatory predictability matters alongside market size and commercial returns.
Where licensing, product standards and compliance requirements differ significantly between jurisdictions, companies operating across several markets may face additional administrative and operational burdens.
Tameklo’s call for regulatory alignment therefore places institutional cooperation at the centre of efforts to build a more integrated African petroleum market.
Regulatory Differences And The Cost Of Doing Business
The push for convergence is not necessarily a call for every African country to adopt identical petroleum laws. Rather, the emphasis is on aligning standards and procedures sufficiently to make cross-border trade and investment more predictable while preserving national regulatory responsibilities.
Differences in product specifications, licensing processes and compliance obligations can create friction for businesses seeking to move petroleum products or establish operations across multiple countries.
Greater compatibility could reduce duplication, improve regulatory coordination and make it easier for investors to understand the requirements governing their activities.
Tameklo argued that closer alignment of standards, licensing requirements and compliance procedures would facilitate business activity and strengthen investor confidence.
The investment implications are significant. Refining and storage projects require substantial upfront capital and depend on confidence that market access, operating conditions and regulatory obligations will remain sufficiently predictable over the investment period.
However, regulatory convergence alone cannot guarantee investment. Financing costs, infrastructure constraints, access to crude oil, market demand and the commercial competitiveness of individual projects will continue to influence investment decisions.
The policy challenge is to make regulation more consistent without weakening oversight, safety requirements or environmental protections.
Harmonisation will deliver practical benefits only if it improves coordination while maintaining effective enforcement.
Refining Capacity Remains A Strategic Priority
Beyond regulation, the NPA chief executive called for investment in refining infrastructure, technology, storage and skills to increase value addition within Africa’s petroleum industry.
His emphasis reflects the wider economic implications of the continent’s dependence on imported refined petroleum products despite its crude oil resources.
Greater domestic processing capacity could allow more value to be retained within African economies, while supporting jobs and related industrial activity.
Tameklo stressed the importance of stronger domestic refining capacity and technology transfer in reducing dependence on imported petroleum products, improving energy security and creating employment.
Yet building refineries is not, by itself, a guarantee of lower fuel costs or greater energy security. Projects must be able to secure reliable feedstock, operate efficiently, access suitable infrastructure and compete with imported products.
Poorly utilised or commercially unviable facilities can expose investors and governments to substantial financial risks.
Technology transfer is equally important. Refinery development requires more than physical infrastructure; it depends on technical expertise, maintenance capability, process efficiency and a skilled workforce able to sustain operations over time.
Investment in storage can also strengthen supply resilience by improving the capacity to manage inventories and respond to disruptions.
The extent of that benefit, however, depends on the location, scale and accessibility of the facilities, as well as the quality of supply-chain planning.
Regional Cooperation Beyond National Borders
Tameklo urged regulators, governments and industry stakeholders to work more closely on cross-border energy projects, knowledge sharing and the development of common standards.
Such cooperation could support a more connected downstream market in which petroleum products, infrastructure services and technical expertise move more efficiently between countries.
For West Africa, stronger regulatory coordination could be particularly relevant to countries that trade petroleum products across borders and rely on shared transport, storage or distribution networks.
More predictable rules could help businesses plan regional operations and reduce uncertainty around compliance.
However, regional integration requires implementation mechanisms, not simply agreement on broad principles. Regulators must determine which standards can be aligned, how differences will be addressed and how compliance will be monitored across jurisdictions.
Institutional capacity is central to that process. Tameklo identified capable institutions and a skilled workforce as necessary to the long-term competitiveness and resilience of Africa’s energy sector.
This creates a dual responsibility for governments: they must establish compatible regulatory frameworks while ensuring that national institutions have the technical expertise and resources to enforce them.
From Policy Convergence To Investment Results
Tameklo described regulatory convergence as a strategic instrument for attracting investment, encouraging innovation and developing a more integrated African energy market.
The proposition is that a more predictable regulatory environment, combined with stronger refining and storage infrastructure, technology transfer and workforce development, could improve the conditions for investment across the petroleum value chain.
But the effectiveness of that approach will depend on whether the call translates into practical measures.
Common standards, coordinated licensing processes, information sharing and clearer procedures for cross-border projects would provide more tangible indicators of progress than declarations of intent alone.
For African petroleum markets, the objective is not simply to increase the volume of trade. It is to build systems that can process, store and distribute energy products competitively, while improving supply security and retaining more economic value within the continent.
Tameklo’s intervention at the Lagos conference places regulatory cooperation alongside infrastructure investment as part of that effort.
The next test for policymakers and regulators will be whether they can turn the principle of convergence into workable arrangements that lower avoidable barriers to business without compromising effective regulation.
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