African Nations Rush to Dangote Refinery as Hormuz Crisis Strains Supplies

Several African countries, including South Africa, Ghana and Kenya, are turning to Nigeria’s Dangote Refinery. Tightened fuel supplies from the Middle East followed disruptions linked to the ongoing Israel-US-Iran conflict and threats at the Strait of Hormuz. Africa’s largest private refinery, built by Aliko Dangote, processes 650,000 barrels per day. It began operations in 2024 and quickly became a key source of refined fuel for the continent. Industry reports say demand is surging as governments negotiate supply agreements. The situation highlights Africa’s longstanding reliance on imported petroleum. Until recently, Nigeria exported crude oil abroad for refining, then paid higher costs to re-import finished products. Today, domestic output meets about three-quarters of local demand, leaving limited volumes for export. Analysts warn that one facility cannot close the continent’s fuel gap alone, especially since many nations lack strategic reserves. Governments are urging fuel conservation and exploring alternatives as competition intensifies. According to recent interviews, availability—more than price—is driving the current market squeeze.

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