The Dangote Petroleum Refinery, owned by Nigerian billionaire industrialist, Aliko Dangote has ramped up exports of gasoline and urea to African markets grappling with supply shortages triggered by the ongoing US-Iran war.
Dangote said on Monday during a facility tour of the Dangote Petroleum Refinery in Lagos, that the plant was currently operating at full capacity of 650,000 barrels per day.
The report by Reuters quoted Dangote as saying that the refinery had played a critical role in cushioning the impact of the global supply shock, not only in Nigeria, but across several African countries facing disruptions in fuel and fertiliser supplies.
“What I can do is assure Nigerians and most of West Africa, Central Africa, and East Africa that we have the capacity to supply them,” Dangote said.
He added that the refinery had already exported about 17 cargoes of gasoline to other African countries in recent weeks, as demand surged across the continent.
According to him, exports of urea fertiliser have also increased significantly, with the company redirecting shipments to African markets that were previously not major destinations.
“In the last couple of days, we’ve been looking mostly to African countries, which we were not doing before,” he said, noting that the shift was driven by urgent demand from countries seeking alternative sources of supply.
Officials of the refinery stated that the facility has the capacity to produce up to 3 million metric tonnes of urea annually, most of which has historically been exported to markets in the United States and South America.
Despite the ramp-up in production and exports, fuel prices in Nigeria have continued to climb to record levels, reflecting broader global market pressures.
Dangote attributed the trend to high crude oil prices, noting that increased refining output alone cannot fully offset the rising cost of feedstock.
He, however, expressed optimism that sourcing more crude oil in naira could help moderate domestic fuel prices. “We are working towards getting more crude cargoes priced in local currency, which will help in reducing the pressure on fuel costs,” he said.
Local media reports stated that government officials indicated that the Nigerian National Petroleum Company Limited has increased crude supply allocations to the refinery, with seven cargoes scheduled for May, up from five in previous months.
According to the report, the surge in demand for petroleum products across Africa is being driven by a combination of global and regional factors.
The ongoing conflict in the Middle East has disrupted traditional supply chains, forcing many African countries to seek alternative fuel sources closer to home. At the same time, limited refining capacity across the continent has made many countries heavily dependent on imports.
In addition, seasonal factors, rising industrial activity, and increased transportation demand have contributed to higher consumption of refined products such as petrol and diesel.
GIK/APA