Dangote Refinery Reshapes Africa’s Fuel Landscape as Nigeria Ends Petrol Import Dominance
Nigeria has relinquished its status as Africa’s largest importer of refined petroleum products, with South Africa now taking the lead. This shift is driven by the operational ramp-up of the $20 billion Dangote Refinery, located on the outskirts of Lagos. Boasting a refining capacity of 650,000 barrels per day, the refinery is the largest single-train facility in the world and has significantly reduced Nigeria’s dependence on petrol imports since its launch in 2024.
According to energy consultancy CITAC, Nigeria imported 3.1 million tons of refined products in Q1 2025, down sharply from previous years—while South Africa imported 4.2 million tons. This transformation highlights a growing continental ambition to strengthen domestic refining capabilities, with several African countries, including Angola, Uganda, and Mozambique, launching local refinery projects to emulate Nigeria’s new model.
The success of the Dangote Refinery is especially notable given its troubled development history marked by delays and cost overruns. Despite producing over 1.3 million barrels of crude oil daily, Nigeria long depended on foreign-refined petrol. The refinery’s output is now beginning to reverse that trend, boosting energy security and easing Nigeria’s fiscal pressure by cutting costly fuel imports.
In contrast, South Africa’s increased reliance on fuel imports reflects the deterioration of its local refining infrastructure. Several refineries, including the country’s largest—Sapref, have been shut down since 2020 due to ageing equipment and underinvestment. With over 60 percent of its fuel now imported, South Africa has become an increasingly attractive market for global fuel traders such as Glencore and Vitol.
While South Africa faces risks tied to import dependency—like currency fluctuations and supply chain disruptions—Nigeria stands to gain economically and strategically from its reduced reliance on imports. The rise of the Dangote Refinery could strengthen the naira, improve the trade balance, and lower the financial burden of subsidies, signaling a new chapter in Nigeria’s energy sector.
Source: Business day