At a Glance
- Nigeria slashes fuel imports as Dangote Refinery ramps up to 500,000 barrels per day.
- South Africa becomes Africa’s top fuel importer after local refinery closures stall output.
- Dangote’s refinery reshapes Africa’s energy flows, boosts exports, and cuts petrol prices.
South Africa has quietly overtaken Nigeria as Africa’s largest fuel importer, marking a significant shift in the continent’s energy landscape.
This change is closely tied to the vision of one man: Aliko Dangote, Africa’s richest billionaire. He has helped transform Nigeria’s long-standing problem of producing crude oil but relying heavily on imported refined fuel.
His Dangote Petroleum Refinery, the largest in Africa and the world’s biggest single-train refinery, is changing how fuel moves across sub-Saharan Africa.
Crude-rich Nigeria reduces petrol reliance
For years, Nigeria’s position as Africa’s top fuel importer was a puzzling contradiction. Despite having vast crude oil reserves, the country lacked enough refining capacity and had to import millions of tons of refined petrol annually.
This dependence made Nigeria vulnerable to global fuel price swings and limited economic growth, even while exporting crude oil abroad.
Then came the Dangote Petroleum Refinery, a $20 billion facility near Lagos in Ibeju-Lekki. Since it began operations in 2024, the refinery has ramped up production, reaching 500,000 barrels per day by January 2025, with plans to hit its full capacity of 650,000 barrels per day by mid-year.
This boost in production is changing Nigeria’s fuel market. Data from CITAC, a respected energy consultancy, shows Nigeria’s refined fuel imports fell sharply to 3.1 million tons in the first quarter of 2025.
Meanwhile, South Africa’s imports rose to 4.2 million tons, making it the continent’s top fuel importer for the first time in over a decade.
This rise reflects challenges within South Africa’s fuel industry, especially the 2022 shutdown of Sapref, the country’s largest refinery.
Although the government took over Sapref in 2023, operations haven’t resumed yet, forcing South Africa to depend heavily on imported fuel.
Dangote Refinery reshapes Africa’s energy future
Dangote’s refinery is about more than just meeting Nigeria’s fuel needs, it marks a turning point for the country and for Africa’s role in the global energy landscape. In March 2025 alone, the refinery exported 2 million barrels of jet fuel to the United States.
At the same time, it imported crude oil from Saudi Arabia to fine-tune its refining process. This mix of exports and imports reflects a strategic effort to ensure efficiency and maintain product quality. The use of international crude also signals the refinery’s growing importance as a hub for the region.
The economic impact is already being felt. Petrol prices at Nigerian depots have dropped by more than 10 percent this year, welcome news for both consumers and businesses. The refinery’s operations fit into a broader push across Africa to reduce dependence on imported fuel. Countries like Uganda, Angola, and Mozambique are planning similar projects, though none have progressed as far as Nigeria’s facility, which overcame years of delays and budget challenges to finally go live.
Nigeria’s industrial rise gains momentum
For Aliko Dangote, whose net worth stands at $23.3 billion, according to Forbes, the refinery is more than just another business. It’s a key piece of his plan to grow Dangote Group’s revenue to $30 billion by 2026. Beyond refining, the group is exporting petrochemicals and fertilizers, cementing its role in Africa’s industrial development. The success of the refinery underscores how large-scale investments can help shift Africa toward greater energy self-sufficiency.
Zooming out, the contrast with South Africa is striking. Once a major player in refining, South Africa is now the continent’s top fuel importer, struggling with aging infrastructure and delayed upgrades.
Meanwhile, Nigeria is making strides thanks to private investment and long-term planning. As Dangote ramps up production and extends exports, the ripple effects are expected to reach across the region, narrowing Africa’s fuel import gap and redefining its place in the global energy conversation.
At its core, this transformation highlights a simple truth: natural resources alone aren’t enough. It takes commitment, vision, and infrastructure to turn potential into progress.
Dangote’s refinery is a reminder that when those elements come together, Africa doesn’t just keep up, it leads. South Africa’s shifting position is a cautionary tale, but also a reflection of just how quickly things are changing. Across Africa, the energy landscape is being redrawn, one investment at a time.
