South Africa and Others Eyeing Fuel Imports from Dangote Refinery

As Dangote Refinery prepares for large-scale fuel export, South Africa and other African countries show strong interest, positioning the refinery as a crucial supplier

Dangote Refinery fuel exports are poised to reach new heights as the facility moves closer to exporting fuel to countries across Africa. Sources confirm that the refinery, located in Nigeria and boasting a production capacity of 650,000 barrels per day, is in advanced talks with multiple nations, including South Africa, Angola, and Namibia, to initiate fuel shipments. The refinery’s influence extends beyond West Africa, as additional agreements are underway with nations such as Niger Republic, Chad, and Burkina Faso.
The $20 billion Dangote Refinery fuel exports project has garnered significant attention, positioning itself as a strategic partner for African nations seeking dependable fuel sources. The Chairman of Ghana’s National Petroleum Authority, Mustapha Abdul-Hamid, recently highlighted that securing an agreement with Dangote would ease Ghana’s $400 million monthly fuel import burden from Europe. Talks with Ghana, along with other countries like South Africa and Namibia, underscore the refinery’s anticipated role in reshaping Africa’s fuel supply dynamics.

Meanwhile, domestic fuel marketers in Nigeria have opted to continue importing fuel, citing concerns over the pricing structure at the Dangote Refinery. Industry bodies such as the Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) argue that importing fuel at lower prices could alleviate the financial strain on consumers. To proceed, these associations seek regulatory approvals and foreign exchange access from the Central Bank of Nigeria.
As Dangote Refinery fuel exports ramp up, more countries are likely to join the list of importers, marking a shift in Africa’s fuel supply network. While Nigerian marketers push for regulatory changes to diversify the fuel market, Dangote’s refinery stands firm, with its expansive capacity and strategic partnerships promising a significant impact across the continent.