Africa is losing over $90 billion each year due to its continued dependence on imported refined petroleum products, Africa’s richest man, Aliko Dangote, has warned. He described the trend as a case of “exporting jobs and importing poverty,” urging the continent to prioritise refining its own crude oil.
Speaking at the West Africa Refined Fuel Conference in Abuja yesterday, Dangote lamented that Africa forfeits massive value to regions with stronger refining capacity. His warning comes as the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) revealed that Africa still imports about 69 per cent of its gasoline, refining only 31 per cent locally.
“Only 15 per cent of African countries have a GDP above $90 billion, yet we hand over that much value every year through crude exports. We must stop outsourcing our industrial future,” Dangote said in his keynote address.
Challenges facing local refining
Dangote also recounted the major technical, commercial, and political hurdles he faced while building the $20 billion Dangote Refinery in Lagos. He noted that securing crude oil from Nigerian producers proved unexpectedly challenging.
“Rather than selling to us directly, international traders bought Nigerian crude and resold it to us at a premium,” he revealed, adding that his refinery currently sources crude from the United States and other countries.
He also criticised Africa’s regulatory bottlenecks and prohibitive logistics costs, which he said make it more expensive to move crude oil within Africa than to import it from countries like India.
Fragmented standards and dumping risks
Dangote condemned Africa’s fragmented fuel specifications, which restrict regional trade.
“The diesel we refine for Nigeria cannot be sold in Ghana, Togo or Cameroon. This fragmentation only benefits foreign traders,” he said.
He warned that Africa’s refining ambitions risk being undermined by the dumping of ultra-cheap and toxic fuels, particularly from Russia.
“We must not let dumping destroy our manufacturing base like it did with textiles,” he cautioned.
Despite the challenges, Dangote expressed optimism, noting that Nigeria is now a net exporter of cement, urea, and petrol. He urged African nations to learn from this success and adopt policies that strengthen domestic industries and protect local jobs.
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