Dangote Refinery Imports 10 Million Barrels of Crude Monthly Amid High Costs, Calls for African Refining Revolution
Aliko Dangote, President/CEO of Dangote Industries, revealed that the Dangote Refinery imports between 9 to 10 million barrels of crude oil monthly from the U.S. and other countries, despite Nigeria being a major crude producer. Speaking at the West African Refined Fuel Conference in Abuja, he explained that international traders often purchase Nigerian crude and resell it at inflated premiums, complicating domestic refining efforts and driving up operational costs for his refinery.
Dangote condemned Africa’s continued dependence on imported refined petroleum products, noting that the continent spends around $90 billion annually to import over 120 million tonnes of fuel. He warned that this dependency not only exports jobs and economic opportunities but also exposes Africa to substandard, often toxic, fuels that wouldn’t pass safety standards in Europe or North America. He stressed the need for African nations to embrace local refining for economic self-reliance and job creation.
Dangote recounted the monumental challenges in constructing the world’s largest single-train refinery. The refinery sits on a swampy 2,735-hectare site, requiring massive groundwork, over 250,000 piles, and millions of meters of wiring. The project employed over 67,000 workers, mostly Nigerians, and was delayed by two years due to the COVID-19 pandemic. The complexity also led to building a dedicated seaport and the world’s largest granite quarry to support operations.
Despite its engineering success, the refinery faces commercial and regulatory hurdles. Exchange rate fluctuations—from ₦156/$ to ₦1,600/$—and crude sourcing issues have hampered profitability. High port and regulatory fees increase freight costs significantly, making it cheaper for countries like India to import oil than for Dangote to operate locally. He criticized a system where Nigerian refiners pay port charges both at loading and discharge points, while competitors like Lomé charge only once.
Dangote also lamented the fragmented fuel standards across Africa, which prevent refined products made in Nigeria from being sold in neighboring countries like Ghana or Togo. He warned that this lack of harmonisation benefits international traders while harming regional integration. He urged African governments to adopt protective policies similar to the U.S. and EU to defend local refiners from the influx of cheap, low-quality fuel — including blends from Russia sold under international price caps.
Source: Nairametrics