Nigeria’s vast Dangote refinery is ramping up fuel and fertiliser exports across Africa as the ongoing Iran war disrupts global energy supply chains, worsening shortages and driving up prices across the continent.
Speaking during a tour of the Lagos-based facility, billionaire industrialist Aliko Dangote said the refinery is now operating at its full capacity of 650,000 barrels per day and is helping to cushion the impact of the crisis both domestically and across Africa.
“What I can do is assure Nigerians and most of West Africa, Central Africa and East Africa, we have the capacity to supply them,” he said.
The refinery has already shipped at least 17 cargoes of petrol to African countries in recent weeks, as nations scramble to replace disrupted imports from the Middle East. The conflict involving Iran has strained global oil logistics, particularly through key transit routes such as the Strait of Hormuz, sending shockwaves through fuel-dependent economies.
Demand for Dangote’s products has surged sharply, marking a shift in regional trade patterns. Countries that previously relied on imports from Europe and the Gulf are increasingly turning to Nigeria as a nearer and more stable supplier.
Alongside fuel exports, the refinery has also increased shipments of urea fertiliser. Traditionally exported to markets such as the United States and South America, fertiliser supplies are now being redirected towards African buyers seeking alternatives amid global disruption. The plant has the capacity to produce up to 3 million metric tonnes of urea annually, placing it among the world’s largest producers.
Despite the surge in output, however, the benefits have yet to fully ease pressure at home. Fuel prices in Nigeria have climbed to record highs, underlining the continued influence of global crude oil prices. Analysts note that even at full capacity, the refinery cannot entirely shield the domestic market from international volatility.
Dangote acknowledged the challenge, indicating that efforts are underway to secure more crude oil priced in local currency. Such a move could help stabilise fuel costs and reduce reliance on dollar-denominated transactions, which have contributed to price fluctuations.
There are early signs of increased support from the state oil sector. The Nigerian National Petroleum Company is expected to allocate seven crude cargoes to the refinery in May 2026, up from five in previous months, according to industry sources.
Energy analysts say the refinery is fast emerging as a strategic asset for Africa at a time of heightened geopolitical uncertainty. By supplying refined fuel closer to home, it offers a partial buffer against global shocks that have historically left the continent vulnerable.
However, experts caution that as long as the Iran conflict continues to disrupt supply routes, both fuel prices and availability are likely to remain unstable. For now, Dangote’s expanding export footprint signals a significant shift in Africa’s energy landscape—one that could reshape trade flows and reduce dependence on distant suppliers in the long term.
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