Nigeria’s Dangote refinery boosts exports to ease Africa’s supply crunch

Nigeria’s Dangote refinery, the largest in Africa and one of the biggest single-train refineries globally, has significantly ramped up exports of gasoline and urea to African markets facing supply shortages triggered by the ongoing Iran war, according to its owner, Aliko Dangote.

Speaking on Monday during a tour of the massive facility located on the outskirts of Lagos, Dangote stated that the refinery is currently operating at its full processing capacity of 650,000 barrels per day. This output level has played a crucial role in easing fuel supply pressures not only within Nigeria but also across several regions in Africa.

He assured that the refinery has the logistical strength and production capability to supply refined petroleum products to countries across West Africa, Central Africa, and East Africa, many of which have been grappling with disruptions in fuel imports due to geopolitical tensions in the Middle East.

Dangote revealed that approximately 17 cargo shipments of gasoline have already been dispatched to various African countries. In addition, exports of urea fertilizer have increased in recent days, as more buyers across the continent seek alternative and reliable sources of supply amid global uncertainty.

The refinery’s pivot toward African markets marks a strategic shift, as a significant portion of its urea production—estimated at up to 3 million metric tons annually—has traditionally been exported to markets in the United States and South America. However, recent demand patterns suggest a growing intra-African trade dynamic driven by supply chain disruptions and rising global commodity prices.

Despite the refinery reaching peak operational capacity, fuel prices in Nigeria, Africa’s largest oil producer, have climbed to record levels. Industry analysts attribute this trend to persistently high global crude oil prices, which continue to exert upward pressure on domestic fuel costs.

Dangote noted that the refinery is exploring options to source more crude oil priced in Nigeria’s local currency, the naira, as part of efforts to stabilize and potentially reduce fuel prices for consumers.

Meanwhile, supply arrangements appear to be improving. According to trade sources and a refinery official, the state-owned Nigerian National Petroleum Company has increased its allocation of crude oil cargoes to the Dangote refinery. Reports indicate that seven cargoes have been scheduled for May delivery, up from five cargoes in previous months, signaling stronger domestic supply support for refining operations.

Overall, the Dangote refinery is emerging as a critical player in Africa’s energy security landscape, helping to mitigate the effects of global supply shocks while strengthening regional trade and reducing reliance on imported refined products.