Latest news with #DangoteRefinery
Business Insider
16 hours ago
- Business
- Business Insider
Dangote exposes black market fuel cartels undermining refinery development in Africa
Speaking at the Global Commodity Insights Conference on West Africa organised by the Nigerian Midstream and Downstream Petroleum Regulatory Authority in partnership with S&P Global in Abuja, Dangote warned that these shadow networks are undermining efforts to build local refinery infrastructure by manipulating prices and supply chains with emphasis on the maritime fuel trade centered around Lome, Togo. He explained that international traders have long exploited the lack of refining capacity in Africa by storing and selling imported refined petroleum products offshore at inflated prices. ' The market is a uniquely African phenomenon, ' he said. ' International traders maintain floating storage of about two million tonnes of petroleum products just offshore. These were being sold at inflated prices, given the lack of local refining capacity. Immediately, the Dangote Refinery became operational, they decided to crash the prices.' Dangote argued that the move was deliberate. ' Make no mistake, those who profit from this system will do everything they can to prevent other refineries from emerging." "The whole essence of Lome is to ensure that no refinery operates in Sub-Saharan Africa. In fact, I don't see any new major refining project succeeding with the offshore Lome market in existence.' He warned that these shadow networks manipulate supply chains and undercut prices, ultimately deterring investment in large-scale refining infrastructure. ' We cannot continue to allow a parallel oil economy to dictate the fate of Africa's energy self-sufficiency, ' Dangote said. Africa's push for fuel sufficiency Dangote's comments come amid renewed efforts by African leaders to attract private capital into local refining infrastructure in order to reduce dependency on foreign fuel imports and retain more value within the continent. Despite efforts to expand refining capacity, Nigeria and other West African nations still import nearly 69% of their gasoline, according to Farouk Ahmed, head of Nigeria's Midstream and Downstream Petroleum Regulatory Authority. In 2025, West Africa trades approximately 2.05 million metric tonnes of gasoline each month, yet only 31% is supplied by local refineries. Despite the region's position as a major hydrocarbon producer and a growing refining hub, it continues to depend heavily on fuel imports from Europe, the Middle East, and Asia. Africa's push for fuel self-sufficiency is driven by strategic reforms, infrastructure investments, and policy changes aimed at reducing reliance on imported petroleum products. . Aliko Dangote pointed to a major challenge undermining progress: the lack of harmonised fuel standards across African countries. Unlike Europe's unified system, each African nation maintains its own specifications.
Zawya
20 hours ago
- Business
- Zawya
Nigeria's Dangote warns cheap Russian oil products threaten African refineries
LAGOS: Nigerian billionaire Aliko Dangote has warned discounted Russian petroleum products are pouring into African markets and risk undermining the continent's emerging refining industry. Dangote, who has been ramping up Africa's largest refinery - a $20 billion facility with an initial capacity of 650,000 barrels per day on the outskirts of Lagos - has struggled to secure crude supplies locally even as he aims to expand the capacity to 700,000 bpd. "We are now increasingly facing the dumping of cheap, often toxic petroleum products, some of which are blended to substandard levels that would never be allowed in Europe or North America," Dangote said at an oil conference in Abuja. He attributed this trend to Western sanctions on Russian oil, which have prompted Moscow to offer steep discounts to alternative markets, including Africa. Russia's energy ministry did not immediately respond to a request for comment. Dangote also expressed concern about the Lomé floating oil market off the coast of Togo, which is dominated by international traders. With over 2 million barrels of stored petroleum products, Lomé has become a key hub for fuel imports and Dangote warned it could undermine Africa's refining efforts. Despite Africa producing around 7 million barrels of crude oil per day, only 40% of its consumption is refined locally. The continent still imports over 120 million metric tons of refined products annually. Dangote's refinery, which began operations last year, has started exporting petrol, with exports reaching 1 million tons since June. However, he said local producers faced stiff competition from international traders who exploited regulatory gaps and inconsistent fuel standards across African countries. To protect the domestic industry, Dangote urged African governments to adopt measures employed in the United States, Canada, and Europe, such as tariffs and emissions caps. Despite Dangote's concerns, Africa remains a small market for Russian oil products compared to major buyers like Turkey and Brazil. In June, Russian diesel and gasoil exports to African countries dropped 30% from the previous month, totalling about 0.7 million tons. Morocco, Tunisia, Togo, and Egypt were among the largest importers, according to shipping data. Additionally, some vessels loaded in May with about 230,000 tons of Russian diesel had their destinations marked as "for orders," indicating that final discharge points were not declared or not yet determined. (Reporting by Isaac Anyaogu. Editing by Mark Potter)
Business Insider
a day ago
- Business
- Business Insider
1 million tons of petrol shipped overseas as Dangote refinery takes Nigerian fuel global
The Dangote Refinery, which this year began exporting Premium Motor Spirit (PMS), also known as petrol, to markets beyond Africa, recently highlighted a major milestone with regards to the initiative. According to the chairman of the business, and Africa's richest man, Aliko Dangote, the refinery exported up to 1 million tons of petrol. The Dangote Refinery has commenced the export of Premium Motor Spirit (PMS) beyond Africa, marking a transformative step in regional energy trade. In June and July 2025, the refinery successfully exported one million tonnes of PMS, signaling an increase in its operational scope. The facility achieved its first gasoline export to Asia in June 2025, followed by earlier low-sulfur fuel oil shipments to Singapore and multiple consignments of jet fuel to global markets. Alhaji Aliko Dangote, President of the Dangote Group, made the revelation on Tuesday at the Global Commodity Insights Conference on West African Refined Fuel Markets, which was organized by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in collaboration with S&P Global Insights. As reported by The Punch, the Nigerian billionaire noted that the refinery exported up to a million tons of fuel during June and July 2025. 'Today, Nigeria has actually become a net exporter of refined products. Before I came on the podium, I asked my people how many tonnes of PMS we have actually exported. From June beginning to date, we have exported about 1 million tonnes of PMS, within the last 50 days,' he said. This is a new milestone for the $19 billion, 650,000-barrel-per-day complex, which had hitherto concentrated its exports in West Africa since starting gasoline shipments in 2024. Dangote's young history with fuel exports Concerning Dangote's business of exporting fuel, a noteworthy breakthrough occurred in June 2025, when 90,000 metric tons of gasoline were sent to Asia, marking the refinery's first petrol export outside of West Africa. Mercuria, the trading powerhouse, was set to load the shipment on June 22. This move comes after an earlier April shipment of low-sulfur straight-run fuel oil (LSSR) to Singapore, indicating a deliberate push into Asian markets. The Dangote Refinery's global development has not stopped with fuel. It has also successfully exported two consignments of jet fuel to Saudi Aramco, the world's largest oil firm, and supplied nearly 1.7 million barrels of jet fuel to US ports via six boats. These moves underscore the refinery's growing stature and competitiveness in the global energy sector. This growth has begun to shake established markets. In January 2025, the Organization of Petroleum Exporting Countries (OPEC) stated that Dangote's oil push was beginning to disrupt Europe's refined fuel market. For decades, Europe maintained a profitable $17 billion annual gasoline export business to Africa. Experts now fear that Dangote's efforts may bring a stop to this long-standing trading partnership. As of April 2025, the refinery has more capacity than the top 10 biggest plants in Europe. Crude supply to Dangote On the supply side, the Dangote Refinery is making strategic moves towards self-sufficiency. According to Devakumar Edwin, Vice President of Dangote Industries, the refinery plans to rely solely on Nigerian crude by the end of 2025. In June, local producers supplied 53% of the crude processed, with the remaining 47% coming mostly from the United States. The factory now refines about 550,000 barrels of oil per day. Historically, the refinery has received crude from Brazil, Angola, Ghana, and Equatorial Guinea. However, greater cooperation among Nigerian oil producers, the federal government, and the refinery is expected to increase the share of locally sourced crude in the coming months. As the Dangote Refinery expands its reach and consolidates its supply chain, it is redefining Nigeria's role in global energy markets while simultaneously speeding Africa's economic self-determination.
Business Insider
a day ago
- Business
- Business Insider
Top 10 African countries with the lowest fuel prices in July 2025
In recent months, several portions of Africa have seen minor drops in gasoline costs, notably in areas benefiting from better supply networks, government initiatives, or indigenous refining breakthroughs. However, while low gasoline costs might provide short-term economic gains, they also have long-term consequences that governments must carefully manage. Low gasoline prices often result in decreased transportation and production expenses for both consumers and enterprises. Public transportation rates tend to fall, making commuting cheaper for employees and students. Farmers and small-scale merchants gain from lower logistical costs, which can help improve food distribution and stable market prices. Many African homes rely on fuel-powered generators owing to inconsistent electricity, and cheaper fuel reduces the cost of lighting, cooling, and even running small enterprises from home. Lower gasoline costs can help to keep inflation under control and promote consumer spending. Countries such as Kenya, Ghana, and South Africa have all experienced periods where lower fuel costs boosted economic activity. In Nigeria, recent price decreases at several depots, fueled by greater supply from the Dangote Refinery, have fueled optimism for broader market stability. The Dangote Refinery is very important to this tale. With a refining capacity of 650,000 barrels per day, it has begun to reshape petroleum distribution in West Africa. Its most recent step, the construction of 1.6 million barrels of storage capacity in Namibia, is intended to provide low-cost petroleum to Southern African nations such as Botswana, Zambia, and Zimbabwe. By processing African oil locally and selling the products regionally, the refinery is progressively reducing the continent's reliance on expensive imported refined goods. With that said, here are the 10 African countries with the lowest fuel prices in July, according to GlobalPetrolPrices. Compared to the top 10 list last month, fuel prices for Angola, Algeria, Nigeria, Ethiopia, and DRC reduced slightly, while prices for Egypt, Tunisia, and Liberia increased Fuel prices for Sudan and Libya remained the same. Top 10 African countries with the lowest fuel prices in July 2025 Rank Country Diesel prices Global rank 1. Libya $0.028 1st 2. Angola $0.327 4th 3. Algeria $0.353 6th 4. Egypt $0.385 7th 5. Nigeria $0.545 13th 6. Sudan $0.700 21st 7. Tunisia $0.871 33rd 8. Ethiopia $0.897 35th 9. Liberia $0.908 36th 10. DRC $1.036 47th
Business Insider
7 days ago
- Business
- Business Insider
Dangote links power shortages in Nigeria to stolen funds hidden abroad
The richest man in Africa, Aliko Dangote, recently expressed concern about Nigeria's chronic power shortages, claiming that the country's energy generation is unjustifiably low considering its enormous potential and economic demands. Aliko Dangote, Africa's richest individual, criticized Nigeria's insufficient power generation capacity. Nigeria, with over 200 million citizens, produces only 4,500 to 5,000 MW of power, far below its potential. Dangote highlighted the success of his privately developed Dangote Refinery as an example for energy investment. During a recent tour of the Dangote Refinery in Lagos, the president of the Dangote Group, Aliko Dangote, highlighted how unreasonable it is for a country of over 200 million people to be limited to 4,500 to 5,000 megawatts (MW) of power. 'We as a company alone are producing, group-wide for our own consumption, over 1,500 MW,' he stated. "So, Nigeria should not be three times what we are producing as a country. Nigeria should be at about 50,000 MW to 60,000 MW,' Dangote added. The Nigerian business mogul, whose refinery and fertilizer plants are among Africa's largest, explained that his company's investment in energy demonstrates how private sector engagement in power generating can be game-changing. He encouraged Nigeria's government to further open up the industry to encourage private investment and involvement. Dangote, who has spent the last decade developing the $20 billion refinery project, also stated that, while establishing the refinery was extremely tough, increasing Nigeria's power generating capacity to 30,000 MW is far easier - provided the appropriate policies and commitments are in place. 'What we have done here just shows that there's nothing impossible. All this can be replicated in our power sector. There's no reason why Nigeria should be doing 5,000 MW,' Dangote asserted. 'What we have actually done here is much more difficult than making Nigeria 25,000 or 30,000 megawatts of power, with transmission and distribution. But it's not the work of the government alone,' he continued. Dangote's comments come as his refinery, which is projected to drastically cut Nigeria's dependency on foreign petroleum products, ramps up operations. Dangote links power shortages to a lack of investment and stolen funds hidden abroad Much like the fact that such a facility which is typically supposed to be a government initiative is now privately owned, the Nigerian philanthropist noted that the power sector is also privatized, which presents an opportunity for investors. 'We, the private sector, Nigerians, most especially us, should stop taking our money abroad and invest the money here to make sure that we develop our own country and continent, because without us showing the confidence that, yes, we have confidence in our own economy and the leadership of the country, foreigners will not come,' Dangote explained. 'We know our leaders; we have confidence in them. So, that money they're taking out of the country, they should leave it here so that it can benefit everybody.' As reported by the Punch newspaper, he criticized people who stole public assets and hid them overseas rather than utilizing them to help develop the country, as he connected capital flight to stunted growth. 'I keep saying this: there's nowhere that you will say that there's no corruption. There are lots of countries that have more corruption than we do, but they are growing. Our biggest problem and challenge is that people who have stolen money have taken the money abroad,' he said.
