The President/Chief Executive Officer of Dangote Industries Limited, Aliko Dangote, has revealed that the group’s petroleum refinery imports about 9-10 million barrels of crude every month from the US and other countries.
This was made known by Dangote while delivering a keynote address at the ongoing West African Refined Fuel Conference held in Abuja.
The event is organised by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and S&P Global Commodity Insights.
Dangote said that they have been buying crude oil from international trading companies, which buy this commodity from Nigeria at very high premiums
Dangote lamented that Africa is increasingly becoming a destination for cheap, often toxic petroleum products — many of which are blended to substandard levels that would not be permitted in Europe or North America.
He said, “So, while we produce plenty of crude, we still import over 120 million tonnes of refined petroleum products each year, effectively exporting jobs and importing poverty into our continent. That’s a $90 billion market opportunity being captured by regions with surplus refining capacity. To put this in perspective: only about 15% of African countries have a GDP greater than $90 billion. We are effectively handing over an entire continent’s economic potential to others—year after year.’’
He stressed that, “it defies logic and economic sense for Africa to be exporting raw crude only to re-import refined products—products we are more than capable of producing ourselves, closer to both source and consumption.”
Reflecting on the experience of delivering the world’s largest single-train refinery, Dangote also highlighted a range of challenges faced, including technical, commercial, and contextual hurdles unique to the African landscape.
He said, “At peak, we had over 67,000 people on-site, of which 50,000 are Nigerians, coordinating around the clock across hundreds of disciplines and nationalities. Then, of course, came the COVID-19 pandemic, which set us back by two years and brought new levels of complexity, disruption, and risk. But we persevered.’’
The refinery also required the construction of a dedicated seaport, as existing Nigerian ports could not handle the size and volume of equipment required. This included over 2,500 pieces of heavy equipment, 330 cranes, and even the establishment of the world’s largest granite quarry, with a production capacity of 10 million tonnes per year.
“In short, we didn’t just build a refinery—we built an entire industrial ecosystem from scratch,” he said.
Despite the refinery’s technical success, Dangote identified significant commercial challenges, particularly exchange rates, which have gone from N156/$ at inception to N1,600/$ at completion, and challenges around crude oil sourcing. Although Nigeria is said to produce about 2 million barrels per day, the refinery has struggled to secure crude at competitive terms.
He said, “Rather than buying crude oil directly from Nigerian producers at competitive terms, we found ourselves having to negotiate with international trading companies, who were buying Nigerian crude and reselling it to us—with hefty premiums, of course. As we speak today, we buy 9 – 10 million barrels of crude monthly from the US and other countries.’’
Dangote said, “Refiners in India, who purchase crude oil from regions even farther away, enjoy lower freight costs than we do right here in West Africa because they are not saddled with exorbitant port charges.’’
He said, “The fuel we produce for Nigeria cannot be sold in Cameroon or Ghana or Togo, even though we all drive the same vehicles. This lack of harmonisation benefits no one—except, of course, international traders, who thrive on arbitrage. For local refiners like us, it fragments the market and imposes unnecessary inefficiencies.”
Dangote cited the growing influx of discounted, low-quality fuel originating from Russia, blended with Russian crude under price caps and dumped in African markets.
Dangote cited the growing influx of discounted, low-quality fuel originating from Russia, blended with Russian crude under price caps and dumped in African markets.
He called on African governments to follow the example of the United States, Canada, and the European Union, which have implemented protective measures for domestic refiners.