Dangote Decries Dumping of Toxic Fuels in Africa, Urges Harmonised Standards and Support for Local Refiners

Africa has increasingly become a dumping ground for low-quality and often toxic petroleum products—many of which fail to meet international standards and would be prohibited in Europe or North America. This concern was voiced by Aliko Dangote, President and CEO of Dangote Industries Limited, at the ongoing West African Refined Fuel Conference in Abuja, hosted by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and S&P Global Commodity Insights.

Dangote highlighted that Africa imports over 120 million tonnes of refined petroleum products annually due to insufficient local refining capacity—at an estimated cost of $90 billion. He expressed appreciation to the Nigerian National Petroleum Company Limited (NNPC) for supplying some Nigerian crude oil to his refinery. However, he revealed that the Dangote Refinery still imports between 9 and 10 million barrels of crude oil monthly from the U.S. and other nations due to supply challenges.

Despite producing nearly 7 million barrels of crude daily, Dangote lamented that Africa refines only about 40% of its 4.3 million barrels daily consumption, compared to over 95% in Europe and Asia. This results in lost jobs and economic opportunity, with $90 billion effectively being exported each year. He emphasized the need for Africa to refine its own crude, closer to the source and markets, arguing that continuing to export crude and re-import refined products is economically irrational and unsustainable.

Speaking on the experience of building the Dangote Refinery—the world’s largest single-train facility—he described it as one of the most challenging industrial projects ever undertaken in Africa. The project involved extensive land reclamation, infrastructure development including a seaport and granite quarry, and employed over 67,000 workers, of which 50,000 were Nigerians. The COVID-19 pandemic also delayed the project by two years.

However, Dangote noted that commercial challenges remain. The naira’s dramatic depreciation from N156/$ to N1,600/$ has heavily impacted costs. Sourcing crude oil competitively has also been a major hurdle, as international traders often buy Nigerian crude and resell it at inflated prices. Additionally, excessive port charges—sometimes more costly than chartering a vessel—hamper local refiners, unlike competitors in places like India and Lomé, Togo.

He also criticized the lack of harmonised fuel standards across African nations, which hinders regional trade and benefits only foreign traders who exploit arbitrage opportunities. For instance, Nigeria’s diesel cloud point requirement of 4°C significantly increases production costs despite the country’s tropical climate, unlike more lenient standards (7–12°C) in other African countries. He further condemned the rising influx of cheap, substandard fuel—particularly from Russia—that poses serious health and environmental risks.

Dangote called on African governments to protect local refineries through supportive policies, similar to the protective frameworks in the U.S., Canada, and the EU. He urged for unified fuel standards, streamlined regulations, and regional cooperation to foster self-sufficiency, economic resilience, and environmental safety across the continent.