Nigeria’s Dangote refinery, Africa’s largest, has increased exports of gasoline and diesel to African countries facing supply pressures and rising fuel costs, its owner Aliko Dangote said during a facility tour on Monday.
The $20 billion refinery on the outskirts of Lagos has shipped 17 gasoline cargoes to other African nations in recent weeks, representing a significant shift from its traditional focus on European and American export markets, according to company officials.
“What I can do is assure Nigerians and most of West Africa, Central Africa, and East Africa, we have the capacity to supply them,” Dangote said during the tour of the 650,000 barrel-per-day facility.
The increased African focus comes as fuel prices have surged across the continent due to global supply chain disruptions and elevated crude oil prices. Brent crude has traded above $85 per barrel in recent weeks, up from around $75 in early 2024.
In Ghana, the National Petroleum Authority raised fuel prices in its latest pricing window, pushing petrol up approximately 12 percent and diesel up roughly 15 percent compared to previous months. Similar increases have been recorded across West and East Africa as regulators adjust to higher import costs.
Kenya’s Cabinet Secretary for Treasury and Economic Planning John Mbadi recently warned that global economic pressures, including volatile energy markets, pose risks to trade and financial stability across the region. “Rising oil prices and potential fuel cost increases create disruptions to supply chains that affect the entire continent,” Mbadi said in a statement last week.
The Dangote refinery’s pivot to African markets addresses long-standing regional fuel supply challenges. Most African countries import the majority of their refined petroleum products, leaving them vulnerable to global price volatility and supply disruptions.
Nigeria’s state oil company, Nigerian National Petroleum Company Limited (NNPCL), has increased crude oil allocations to the Dangote facility to support higher production levels. Industry sources familiar with the arrangements said NNPCL allocated seven crude cargoes for May processing, compared to five in previous months, though company officials declined to confirm specific numbers.
The refinery is also expanding fertilizer exports to African markets. The facility can produce up to 3 million metric tons of urea annually, most of which has traditionally been exported to global markets including the United States and South America.
“In the last couple of weeks, we’ve been looking to mostly African countries, which we were not doing before,” Dangote said, referring to fertilizer shipments. He did not provide specific export figures but said the shift addresses regional agricultural supply needs.
United Nations Deputy Secretary-General Amina Mohammed, who visited the facility last month, highlighted the refinery’s potential role in supporting regional energy security. “Facilities like this represent critical infrastructure for addressing Africa’s energy challenges,” Mohammed said during her visit, according to UN officials.
The increased production comes as the Dangote refinery works to reach full operational capacity after beginning commercial operations in early 2024. The facility represents one of Africa’s largest industrial investments and is designed to reduce Nigeria’s dependence on fuel imports.
Despite higher domestic production, Nigeria continues to face fuel supply challenges. Petrol prices at Nigerian filling stations have reached record levels in recent months as the government has reduced fuel subsidies and allowed market-based pricing.
To address domestic pricing pressures, Dangote said the refinery is working to secure more crude oil supplies priced in local currency rather than US dollars. “This would help reduce the impact of exchange rate volatility on our production costs,” he explained.
Industry analysts say the refinery’s focus on African markets could reshape regional energy trade patterns. “The Dangote refinery provides African countries with an alternative to traditional import sources and could improve regional energy security,” said Ayodele Oni, an energy analyst at Lagos-based consultancy Bloomfield Investment Corporation.
However, challenges remain. Transportation costs within Africa can be high due to limited pipeline infrastructure, and many countries still find it more economical to import refined products from established global suppliers.
The facility’s expansion into regional markets comes as African governments increasingly emphasize energy security and reduced dependence on volatile global supply chains. The African Union’s Agenda 2063 development framework identifies energy self-sufficiency as a key continental priority.
Energy-importing economies across Africa continue to face significant fiscal pressures from elevated fuel import costs, according to International Monetary Fund assessments. The fund has warned that sustained high energy prices could undermine economic recovery efforts across the continent.
The Dangote refinery’s increased African exports represent a test case for regional energy integration and could influence future investment in continental refining capacity, industry officials said.