Africa Loses $90bn Yearly to Substandard Fuel Imports – Dangote

Aliko Dangote, President/Chief Executive of Dangote Industries Limited, has decried Africa’s heavy dependence on imported refined petroleum products, noting that the continent loses about $90 billion annually due to the influx of cheap and often toxic fuel. Speaking at the ongoing West African Refined Fuel Conference in Abuja, organized by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and S&P Global Commodity Insights, Dangote expressed concern over the growing trend of importing substandard fuels not allowed in Europe or North America.

He attributed the situation to Africa’s limited domestic refining capacity, which forces the continent to import over 120 million tonnes of refined petroleum products annually. This, he said, not only depletes foreign exchange but also exports jobs and deepens poverty across the region. Despite producing about 7 million barrels of crude oil daily, Africa refines only 40 percent of the 4.3 million barrels of refined products it consumes each day, far behind Europe and Asia, which refine over 95 percent of their consumption.

Dangote revealed that his company imports between 9 to 10 million barrels of crude oil monthly, mainly from the United States and other countries, and commended the Nigerian National Petroleum Company Limited (NNPC) for making some cargoes of Nigerian crude available for his refinery’s operations.

He emphasized that exporting raw crude and re-importing refined products defies logic, especially when African countries have the capacity to refine locally. This practice, he argued, is costing the continent billions in lost economic value. Highlighting the commercial and technical challenges of building the world’s largest single-train refinery, he detailed the complex construction of the Dangote Petroleum Refinery — including land reclamation, infrastructure development, and the creation of a dedicated seaport and granite quarry.

Dangote cited foreign exchange volatility and difficulty in sourcing crude at competitive terms in Nigeria as major commercial challenges, explaining that his refinery has often had to negotiate with international trading firms that buy Nigerian crude and resell it at higher prices. He also noted the high regulatory and port charges in Nigeria, which make freight costs significantly more expensive than in countries like India.

He criticised the lack of harmonised fuel standards across African countries, which restricts regional trade in refined products and benefits only international traders. He gave the example of diesel cloud point standards in Nigeria, which impose technical and economic constraints on local refiners, while other African nations have more practical specifications.

Dangote also raised alarm over the increasing dumping of cheap, low-quality fuel from Russia, which he said is being blended under price caps and sold to African markets. He urged African governments to adopt protective policies similar to those in the US, Canada, and the EU to safeguard local refining industries.

Despite the challenges, he reaffirmed his belief in the power of African industrialisation and free markets grounded in efficiency and safety standards.