Africa loses approximately $90 billion each year to the importation of substandard petroleum products due to limited domestic refining capacity, according to Aliko Dangote, President of Dangote Industries. Speaking at the West African Refined Fuel Conference in Abuja, he lamented that the continent, while rich in crude oil, imports over 120 million tonnes of refined petroleum annually. He criticized the practice of exporting crude only to re-import refined fuel, which leads to job losses and economic dependency.
Dangote revealed that despite having its own refinery, his company imports 9–10 million barrels of crude monthly from the U.S. and other countries due to challenges in securing affordable Nigerian crude. He said international traders often buy Nigerian crude and resell it at higher prices, making local refining less competitive. He also highlighted heavy port and regulatory costs in Nigeria, which make local logistics more expensive than importing fuel from distant countries like India.
The industrialist described the technical, financial, and regulatory hurdles faced in building the Dangote Refinery — the world’s largest single-train refinery. The project, which required massive land reclamation, thousands of workers, and new infrastructure including a port and granite quarry, was delayed by the COVID-19 pandemic and rising exchange rates. Dangote emphasized that the refinery is not just a facility but a new industrial ecosystem built from scratch.
Finally, he called on African governments to harmonize fuel standards across countries to facilitate regional trade and protect local refiners. He noted that artificial fuel regulations and technical specifications, like unrealistic diesel cloud point requirements, create unnecessary burdens. He also warned against the rising influx of cheap, toxic fuels dumped in Africa, especially from Russia, and urged governments to adopt protectionist measures similar to those in the U.S., Canada, and EU to safeguard their economies and public health.
