Dangote Warns Africa Is Losing $90bn Annually to Substandard Fuel Imports
Dangote Warns Africa Is Losing $90bn Annually to Substandard Fuel Imports
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ABUJA — JULY 22, 2025 — Africa is bleeding value—an estimated $90 billion every year—to imported, often substandard refined petroleum products that would fail quality thresholds in Europe or North America, Aliko Dangote, President/CEO of Dangote Industries Limited, has warned.
Dangote issued the alarm at the West African Refined Fuel Conference in Abuja, jointly organised by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and S&P Global Commodity Insights.
Import Dependence Draining Wealth
Dangote said Africa imports over 120 million tonnes of refined petroleum products annually, largely because the continent’s domestic refining capacity remains weak. He argued that this dependency effectively “exports jobs and imports poverty,” calling the $90bn value outflow a missed industrialisation opportunity. By comparison, he noted, “only about 15% of African countries have a GDP greater than $90 billion.”
Despite the continent producing roughly 7 million barrels of crude oil per day, Dangote said only about 40% of Africa’s 4.3 million barrels-per-day refined products demand is met locally; Europe and Asia refine more than 95% of what they consume, he added.
Dangote Refinery’s Crude Sourcing Reality
While thanking the Nigerian National Petroleum Company Limited (NNPC) for initial crude cargoes, Dangote disclosed that the Dangote Petroleum Refinery currently imports 9–10 million barrels of crude each month from the United States and other sources to sustain operations. He said domestic access has at times been constrained, forcing the refinery to buy Nigerian crude through international traders at premium costs.
Quality, Pricing & Policy Distortions
Dangote criticised the growing inflow of discounted, low-quality—sometimes toxic—fuels, including blends linked to Russian crude moving under price caps, into African markets. Weak quality enforcement and non-harmonised fuel standards across African countries compound the problem.
“Fuel we produce for Nigeria cannot be sold in Cameroon, Ghana, or Togo—even though we all drive the same vehicles,” he said, urging regulators to align specifications regionally.
He cited diesel specifications as an easy fix: Nigeria’s 4°C cloud point requirement raises processing costs and restricts crude flexibility, even though most of the country never sees such low temperatures. Many other African states use 7–12°C, he noted, calling harmonization a “low-hanging fruit.”
Cost Pressures: FX, Ports & Logistics
Massive foreign-exchange swings—from ₦156/$ at project start to about ₦1,600/$ at completion—have sharply inflated capital and operating costs, Dangote said. Logistics charges are also punishing: port and regulatory fees can represent up to 40% of freight costs, sometimes equaling two-thirds of vessel charter costs. Loading domestically at the Dangote facility can be more expensive than loading in Lomé, he added, because Nigerian operators pay charges at both loading and discharge points.
Building an Industrial Ecosystem
Dangote described the refinery’s build-out as one of Africa’s most ambitious industrial undertakings: 2,735 hectares of land (much of it swamp requiring 65 million m³ of sand fill), hundreds of thousands of foundation piles, and a peak workforce of 67,000 personnel (roughly 50,000 Nigerians) working through COVID-era delays. The project also required a dedicated deepwater port, thousands of heavy-equipment shipments, and development of what he called the world’s largest granite quarry (10m tonnes/year) to support construction.
“We didn’t just build a refinery—we built an entire industrial ecosystem from scratch,” he said.
Call to Action
Dangote urged African governments to shield and incentivise local refining capacity, citing the protective frameworks used in the U.S., Canada, and European Union. He said the continent must ground trade in economic efficiency, safety, and comparative advantage—not in dumping inferior fuels.
“Producing crude and re-importing expensive, lower-quality refined products makes no economic sense,” he said. “Africa is capable of refining for itself—and doing so to world-class standards.”
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