The Dangote refinery is seen in Lagos, Nigeria, Monday, May 22, 2023. (AP Photo, File) -

Last updated: 1 hour ago

Aliko Dangote

Nigeria’s Dangote refinery, Africa’s largest, is stepping into a critical role as fuel and fertiliser shortages ripple across the continent amid disruptions linked to the Iran war.

Speaking during a visit to the massive Lagos-based facility, billionaire industrialist Aliko Dangote struck a confident tone. He said the refinery is now running at full capacity, 650,000 barrels per day, and is actively supplying not just Nigeria, but much of West, Central, and even East Africa.

In fact, the refinery has already shipped around 17 cargoes of gasoline to other African countries. At the same time, exports of urea fertiliser are climbing fast, as nations scramble to secure alternative supplies. Dangote noted a clear shift: more shipments are now heading to African markets, something the company wasn’t prioritizing before.

The plant itself can produce up to 3 million metric tons of urea annually, though most of it has traditionally gone to the United States and South America.

But despite this surge in output, there’s a catch. Fuel prices in Nigeria are still hitting record highs because rising global crude prices are offsetting the benefits of local refining.

Dangote says the solution could lie in sourcing more crude domestically, and crucially, pricing it in local currency to ease pressure on fuel costs.

Meanwhile, Nigeria’s state oil company is reportedly increasing crude allocations to the refinery, signaling stronger support as the region leans on Dangote’s operation to stabilize supply during a volatile global moment.

Dangote refinery exports increase as Iran conflict creates problems

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