Dangote Refinery is stepping into a widening supply gap as global energy markets come under pressure.
At the Dangote Petroleum Refinery in Lagos, Aliko Dangote outlined a clear shift in strategy.
He said the refinery is increasing petrol and fertiliser deliveries to African countries facing disruptions.
So far, the refinery has shipped about 17 cargoes of petrol across the continent.
Meanwhile, it has increased urea fertiliser exports as buyers search for alternative supply sources.
Dangote said the refinery now prioritises African markets over distant export destinations.
As a result, its 650,000 barrels-per-day capacity supports West, Central and East Africa.
Dangote Refinery Shift Supply To Africa
The plant produces up to 3 million metric tonnes of urea each year.
Previously, it exported much of this output to the United States and South America.
Now, it redirects more fertiliser shipments to African countries facing shortages.
This shift follows disruptions linked to the Iran war in the Middle East.
Specifically, military actions involving the United States and Israel against Iran have unsettled supply routes.
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Global Disruption Impact
For instance, the Strait of Hormuz handles about 20% of global oil flows.
Consequently, strikes on energy infrastructure pushed crude prices to about $120 per barrel before easing.
As a result, the impact is spreading across Africa’s economies and households.
In South Africa, farmers now face higher diesel costs ahead of harvest season.
Similarly, in Nigeria, petrol and food prices have risen sharply, especially in Lagos.
Expansion Plans Ahead
Despite operating at full capacity, the refinery plans further expansion.
Recently, the African Export-Import Bank backed $2.5 billion of a $4 billion loan.
In addition, the company signed a $400 million deal with XCMG Construction Machinery Co., Ltd.
Looking ahead, the refinery aims to scale output from 650,000 to 1.4 million barrels per day.
Ultimately, this move could make it the largest refinery globally once expansion is completed.
