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Dangote Refinery Shifts Nigeria From Fuel Importer to Producer – Report

by Adams Oma
May 29, 2025
in Business News
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Dangote Halts Petrol Sales in Naira, Sets Conditions for Resumption
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Nigeria’s reign as Africa’s top fuel importer has come to an end, thanks to the rising output from the Dangote refinery, Bloomberg reports.

Referencing insights from energy consultancy CITAC, Bloomberg highlights that South Africa has now taken the lead as the largest fuel importer in sub-Saharan Africa. Elitsa Georgieva, CITAC’s executive director, explained that Nigeria’s fuel imports have declined as the Dangote refinery continues to boost local production.

“Since the start of this year, South Africa has consistently recorded the highest fuel imports in the region,” Georgieva noted.

The report also points out a broader trend among African countries like Uganda and Mozambique, which are striving to expand their domestic refining capabilities—a challenging feat even for Dangote, whose \$20 billion refinery project exceeded initial costs and timelines.

ALSO CHECK OUT: FG’s Fertilizer Export Boom to Generate $7m Per Day – Dangote

Meanwhile, fuel traders such as Glencore Plc and Vitol SA have capitalised on South Africa’s increased demand, as several of its refineries have closed since 2020. According to CITAC data cited by Bloomberg, South Africa imported 4.2 million tons of refined petroleum products in Q1 2025, compared to Nigeria’s 3.1 million tons.

For the full year, CITAC projects South Africa’s imports to reach about 15.5 million tons, nearly double Kenya’s estimated 8.9 million tons and significantly ahead of Nigeria’s 6.4 million tons.

South Africa’s refining capacity has been halved over the past five years due to accidents and a lack of investment. Imports now fulfil over 60% of the country’s fuel demand, according to Transnet SOC Ltd, a state-owned logistics company.

In a move to revitalise domestic production, South Africa acquired the closed Sapref refinery from Shell Plc and BP Plc last year. The country is also attracting more fuel traders, with Swiss commodities firm Gunvor reportedly among those shortlisted to acquire Shell’s retail fuel stations.

Following Nigeria’s official launch of the naira-for-crude arrangement on October 1, 2024, Dangote began selling refined fuel products to its partners priced in naira.

Tags: Dangote petroleum refinery
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