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The Dangote refinery, situated on the outskirts of Lagos, has emerged as a vital energy lifeline for the African continent as it navigates the severe supply disruptions caused by the ongoing war involving Iran. With a processing capacity of 650,000 barrels per day, the facility has significantly ramped up its exports of gasoline and urea to nations across West, Central, and East Africa. This strategic shift in distribution aims to mitigate the impact of the international crisis, providing a regional alternative for countries that previously relied on more volatile global supply chains.
The surge in demand became particularly evident in March, as various African governments began scrambling to secure reliable fuel sources following the escalation of the US-Israel conflict with Iran. Reports indicate that the refinery has already dispatched approximately 17 cargoes of gasoline to neighbouring nations. Furthermore, the facility is redirecting its substantial urea production toward African markets; while the plant can produce up to 3 million metric tons of fertiliser annually, its output was traditionally destined for the United States and South America.
“What I can do is assure Nigerians and most of West Africa, Central Africa, and East Africa that we have the capacity to supply them,” stated Aliko Dangote during a recent tour of the expansive facility.
However, the increased domestic production has not yet provided full relief for Nigerian consumers, as fuel prices within the country have climbed to record highs. These spikes are largely attributed to the relentless rise in global crude oil prices, which have outpaced the benefits of the refinery’s current output levels. To combat these rising costs and further stabilises the market, the refinery management is currently exploring avenues to secure more crude oil supplies priced in the local currency, which would reduce the heavy reliance on foreign exchange and potentially lower prices at the pump.
