Nigeria’s Dangote refinery, Africa’s largest, is taking on a key role as fuel and fertiliser shortages spread throughout the continent due to disruptions caused by the Iran war.
During a tour to the vast Lagos factory, billionaire industrialist Aliko Dangote spoke confidently. He stated that the refinery is currently operating at full capacity, producing 650,000 barrels per day and aggressively servicing not only Nigeria but also most of West, Central, and Eastern Africa.
In reality, the refinery has already sent around 17 cargoes of petrol to various African countries. At the same time, shipments of urea fertiliser are rapidly increasing as countries search for other supply. Dangote noticed a definite shift: more exports are now going to African markets, something the corporation wasn’t prioritising previously.
The factory can manufacture up to 3 million metric tonnes of urea per year, the most of which is usually sent 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.
