The President/Chief Executive, Dangote Industries Limited, Aliko Dangote, has stated that Africa loses $90 billion annually to importation of substandard petrol fuel due to lack of refineries in the continent.
Speaking during the ongoing West African Refined Fuel Conference held in Abuja, Dangote revealed that, due to the continent’s limited domestic refining capacity, Africa imports over 120 million tonnes of refined petroleum products annually.
The event, which was organised by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and S&P Global Commodity Insights, seeks to provide a benchmark for pricing of petroleum products in the region.
While appreciating the Management of the Nigerian National Petroleum Company Limited (NNPC), for making some cargoes of Nigerian crude available to the company from start of production to date, he revealed that the company imports between 9-10 million barrels of crude from the United States of America and other countries monthly.
He said: “As we speak today, we buy 9 – 10 million barrels of crude monthly from the US and other countries. I must thank NNPC for making some cargoes of Nigerian crude available to us from the start of production to date.”
Dangote further stated that despite producing around 7 million barrels of crude oil per day, Africa only refines about 40% of its 4.3 million barrels daily consumption of refined products domestically. In stark contrast, Europe and Asia refine over 95% of what they consume.
“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 $90 billion. We are effectively handing over an entire continent’s economic potential to others–year after year,” he said.
He stressed that, “it defies logic and economic sense for Africa to be exporting raw crude only to re-import refined products–products we are more than capable of producing ourselves, closer to both source and consumption.”
Reflecting on the experience of delivering the world’s largest single-train refinery, Dangote also highlighted a range of challenges faced, including technical, commercial, and contextual hurdles unique to the African landscape.
Despite the refinery’s technical success, Dangote identified significant commercial challenges, particularly exchange rates which have gone from N156/$ 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.
“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.
Logistics and regulatory bottlenecks have also taken a toll. Port and regulatory charges reportedly account for 40% of total freight costs, sometimes costing two-thirds as much as chartering the vessel itself.
Dangote further criticised the lack of harmonised fuel standards across African nations, which creates artificial barriers for regional trade in refined products.
“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.”
‘69% of W/Africa’s petrol supply is still imported’
On his part, the chief executive of NMDPRA, Farouk Ahmed, disclosed that 69% of West Africa’s petrol supply is still imported.
Ahmed stated, “Our 2025 statistical data for West Africa’s petrol supply reveals that 2.05 million MT per month of gasoline is being traded, consisting of 1.44 million MT (69 percent) imports and 0.61 million MT (31 percent) refinery contribution from the region.”
He noted that West Africa’s growing refining capacity, currently standing at 1.335 million barrels per day from countries including Nigeria, Ghana, Niger, Senegal, and Côte d’Ivoire, has yet to significantly reduce the region’s dependence on imports.
“The regional supply of fuels in West Africa has grown through improved refining capacities in Nigeria, Ghana, Niger, Senegal and Côte d’Ivoire,” he said. “However, despite these gains, we remain overly reliant on external sources.”
He also criticised the continued use of foreign pricing benchmarks by the region, citing their inadequacy in reflecting local realities.
“These global benchmarks do not fully reflect the unique supply chain peculiarities, logistics costs, and economic realities of the African continent,” he noted.
According to him, the lack of a regional pricing benchmark has stifled investment and hampered transparency and efficiency in the supply chain.
“As a region, we must begin to define our own pricing reality. Establishing a regional price index will not only improve price discovery and transparency but also deepen market development and enhance energy security,” he stressed.
Ahmed praised Nigeria’s reform efforts under President Bola Tinubu’s administration, especially the implementation of the Petroleum Industry Act (PIA) 2021 and downstream sector liberalisation, which he said have improved the investment climate.
“These reforms are attracting investment into trade zones, digital market platforms, and refining projects,” he added. “Nigeria is fast emerging as a key midstream and downstream trade and logistics centre for the entire West African coast.”
He pointed to the country’s improved maritime infrastructure, deep seaports, and active coastline as critical assets positioning Nigeria as a potential fuel distribution hub across the region.
“Nigeria’s refining sector is undergoing massive transformation, with projects like the Dangote Refinery and ongoing rehabilitation of state-owned refineries expected to boost local production significantly,” he said.
Citing the OPEC World Oil Outlook, Ahmed said Africa is projected to add 1.2 million barrels per day of refining capacity between 2025 and 2030, with West Africa expected to contribute significantly.
The GCEO of the Nigerian National Petroleum Company Limited (NNPCL), Bayo Bashir Ojulari, lamented that Africa exports the bulk of its crude oil, but imports refined products at a significant premium.
He said this structural asymmetry depletes value, suppresses industrialisation, heightens supply vulnerabilities and compromises energy sovereignty.
“The vision of an African refinery hub is therefore not an aspiration but a vision without execution is hallucination. We must confront structural bottlenecks, including chronic underinvestment in refining and mixing infrastructure, fragmented and often contradictory regulatory frameworks, policy inconsistencies that cause investment, skills gaps, and limited local development. Still, these are not insurmountable.
“They are catalytic opportunities if met with coordinated action, bold investment, and resolute leadership. Africa’s refining future is a blueprint for action. At NNPC, we are not waiting for the future,” he said.
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He added that through the strategic review and repositioning of its refineries, strategic equity in the Dangote refinery, condensate opportunities, and support for other third-party projects, it is laying the ground for a self-sufficient refining ecosystem that can anchor a continental hub.
“No single country can build a refining hub for Africa. Success demands a continental strategy driven by shared markets, integrated infrastructure, and harmonised policies. Let me outline a few key design imperatives.”
He added that refinery ownership must go beyond equity but transformational for indigenous participation is critical for value retention and national wealth building.
The Minister of State for Petroleum (Oil), Sen. Heineken Lokpobiri, said the government’s mission is also to ensure that Nigeria becomes a marketing hub for refined products in the shortest possible time.
“That is why we give support to our refiners, we give support to our marketers to ensure that we create the best environment for this seamless trading. The government was not going to continue to import products or subsidise them. These things are going to continue. We have moved the production.”
“Our goal as a government is to ensure that the government doesn’t crowd the space. Our goal as a government is to ensure that the government doesn’t get involved in trade. Our goal as policy makers is to ensure that we create the best environment for private businesses to operate. Everywhere in the world.
“Our own ambition is to support the private sector, to grow this sector. Our own ambition is to partner with our neighbours from all over West Africa to make Nigeria the home for energy.”