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Nairametrics
Home Sectors Energy

Dangote Refinery emerges as Africa’s fuel alternative amid Iran war

Olalekan Adigun by Olalekan Adigun
March 20, 2026
in Energy, Sectors
Dangote refinery power plant
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Dangote Petroleum Refinery and Petrochemicals is witnessing a surge in inquiries from African countries seeking fuel supplies following disruptions caused by the Iran war.

This development was disclosed by Bloomberg on Friday.

The report stated that several governments are scrambling to secure alternative sources of refined petroleum products.

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Bloomberg reports that Dangote Petroleum Refinery and Petrochemicals has been approached by South Africa and other African countries, as they move to stabilise fuel supply in the wake of the crisis.

What they are saying 

Officials and stakeholders say the surge in demand reflects concerns over fuel availability rather than pricing, as countries prioritise energy security.

Governments are also taking steps to diversify supply sources to mitigate risks associated with Middle East disruptions.

  • “Right now it is not about pricing, it’s about availability. I think the situation will continue for a while,” Aliko Dangote said in an interview with The Economist.
  • South Africa’s government, quoted by Bloomberg, stated it is “actively coordinating with industry stakeholders to secure both crude oil and refined petroleum products from a diversified range of sources.”
  • The government added that “a comprehensive plan is in place to manage potential supply risks.” 

The comments demonstrate the urgency among countries to secure reliable fuel supplies amid ongoing geopolitical uncertainty.

Backstory

The ongoing US-Israel war on Iran has significantly disrupted global energy markets, affecting the flow of oil and refined products from the Middle East.

Many African countries, particularly in the east and southern regions, rely heavily on imports from the Middle East for refined fuel.

This dependence has exposed structural vulnerabilities, as alternative supply sources remain limited and often more expensive.

More insights

The Dangote refinery, with a capacity of 650,000 barrels per day, is emerging as a key alternative supply hub for African countries seeking to reduce reliance on the Middle East.

  • About 75% of the refinery’s output is reserved for Nigeria, while the remaining capacity is available for export.
  • South Africa is seeking a 12-month standard supply contract with Nigeria, according to people familiar with the discussions.
  • Ghana and Kenya have also reportedly reached out to Dangote for fuel supplies.
  • Around 75% of refined fuel imports in east and southern Africa come from the Middle East, according to energy consultancy CITAC.

Despite rising concerns, some countries maintain short-term supply buffers to manage immediate risks.

What you should know

Nairametrics reported earlier that Nigeria imported crude oil worth $3.74 billion in 2025 for processing at the Dangote Petroleum Refinery.

In February, Dangote Petroleum Refinery announced it reached its full designed capacity of 650,000 barrels of crude oil per day (bpd).

In October 2025, Aliko Dangote announced plans to expand the refinery’s capacity from 650,000 bpd to 1.4 million bpd.


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Olalekan Adigun

Olalekan Adigun

Olalekan Adigun is a seasoned political analyst and writer with extensive experience in crafting compelling narratives and executing strategic initiatives. Known for his insightful commentary on governance, policy, and socio-economic issues, he has contributed to various national and international platforms.

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