Latest news with #Dangote
Business Insider
11 hours ago
- Business
- Business Insider
Dangote's growing reliance on U.S. crude tied to Nigeria's supply failures
Aliko Dangote, President of the Dangote Group, says his refinery is increasingly depending on crude oil imports from the United States due to Nigeria's failure to meet domestic supply commitments. Aliko Dangote states his refinery increasingly relies on U.S. crude imports due to Nigerian supply challenges. Despite being Africa's largest oil producer, Nigeria has struggled to meet domestic crude supply commitments. The Dangote Refinery has diversified its sources, importing crude grades from the U.S., Angola, and Algeria. Despite being Africa's largest oil producer, Nigeria has struggled to consistently provide crude feedstock to the 650,000-barrel-per-day Dangote Petroleum Refinery, forcing it to look abroad to sustain operations. The Dangote Refinery recently hosted Mrs. Maureen Ogbonna, Coordinator of the Technical Committee of the One-Stop Shop for the Sale of Crude and Refined Products in Naira initiative, during an official visit to the facility. Ogbonna, who led a delegation to the refinery, described it as ' a breath of fresh air ' with a transformative impact across virtually every sector of the Nigerian economy. While applauding the technical committee's role in supporting President Bola Tinubu's naira-for-crude initiative, Aliko Dangote praised the policy's positive effect on the economy. He noted that the crude-for-naira swap deal has helped lower petroleum product prices, reduced pressure on the U.S. dollar, and contributed to stabilizing the local currency. However, Dangote acknowledged that due to ongoing shortages of domestic crude oil, the refinery has increasingly had to rely on imports from the United States in recent months to sustain operations. As a result, U.S. suppliers have become a key fallback, highlighting both Nigeria's supply gaps and the growing role of international markets in sustaining one of Africa's largest energy investments. Dangote's dependence on foreign crude According to the National Bureau of Statistics (NBS), Nigeria spent ₦1.19 trillion on crude oil imports in the first quarter of 2025, making it the country's third most imported commodity during the period—despite being Africa's top oil producer. The contradiction highlights persistent supply gaps to local refineries, especially the Dangote Petroleum Refinery. Findings show that the Dangote Refinery is projected to import 17.65 million barrels of crude oil between April and July 2025, beginning with about 3.65 million barrels already delivered over the past two months, amid ongoing allocations under the Federal Government's naira-for-crude policy. As of March 2025, the refinery had received over three million barrels of U.S. crude in a single month, according to Bloomberg. Beyond American crude, the refinery has diversified its sources by importing Angola's Pazflor grade and Algeria's Saharan Blend, both supplied by Glencore Plc.
Reuters
2 days ago
- Business
- Reuters
Nigeria to export first gasoline cargo to Asia from dangote refinery, source says
BRUSSELS, June 18 (Reuters) - A 90,000 metric ton cargo of gasoline from Nigeria's Dangote refinery will be sold out of the region for the first time and bound for Asia, a source familiar with the matter said. Since the 650,000 barrel-per-day refinery started gasoline exports last year, the cargoes have stayed in west Africa. Mercuria is due to load the cargo on June 22, the source said. "We sell our products to those who are willing to give us the highest price. It's the buyer's right to take the products to any destination of their choice," a spokesperson for the Dangote refinery said.
Business Insider
3 days ago
- Business
- Business Insider
Fears of a Dangote monopoly spurs backlash against his fuel distribution plan
The Dangote Petroleum Refinery announced a bold plan to deliver fuel directly to Nigerian gas stations on August 15, 2025, which could revolutionize the nation's downstream petroleum industry. The Dangote Petroleum Refinery plans to directly supply fuel to Nigerian gas stations starting August 15, 2025. The initiative includes complimentary logistics, impacting customers like fuel marketers, manufacturers, and more. The Products Retail Outlets Owners Association (PETROAN) opposes the move, citing market destabilization risks. With free logistics provided as a sweetener to improve distribution, the company declared that it would start supplying Premium Motor Spirit (PMS) and diesel to a broad spectrum of customers, including fuel marketers, gasoline dealers, manufacturers, telecom companies, aviation companies, and other large users. However, the industry's biggest players have swiftly criticized and opposed what was seen as a game-changer. The Products Retail Outlets Owners Association (PETROAN), which represents the interests of retail fuel businesses across the country, has publicly opposed the proposal, as reported by the Punch. The organization claims that Dangote's desire to function as both a producer and a distributor of petroleum products is an overreach that might destabilize the sector and result in significant job losses. What PETROAN said 'The company may leverage its market power to fix prices, limit competition, and exploit consumers, much like it has done in other sectors,' the group disclosed via a statement. 'This could lead to a massive shutdown of filling stations across Nigeria, resulting in widespread job losses. The introduction of 4,000 brand-new Compressed Natural Gas-powered tankers by the Dangote refinery poses a significant threat to the livelihoods of thousands of truck drivers and owners,' the statement added. This is not the first time that concerns have been voiced about the refinery's expanding impact. PETROAN cited similar tendencies in other industries where Dangote Group has a significant presence, accusing the conglomerate of abusing its enormous market clout to dominate and suppress competition. There have been claims that allowing Dangote to dominate both refining and retailing risks distorting pricing processes and reducing transparency in Nigeria's petroleum industry, which is already plagued by inefficiency, opacity, and regional inequities. PETROAN is now urging the Nigerian government to intervene and regulate the refinery's role in fuel distribution to prevent market exploitation and maintain a level playing field. 'It is obvious that Dangote plans to gain full monopoly of the downstream sector, which would enable the company to exploit Nigeria's petroleum consumers. This could lead to higher prices, reduced competition, and decreased economic efficiency.
Bloomberg
06-06-2025
- Business
- Bloomberg
Nigeria's Dangote Oil Refinery Is Buying Ever More US Crude
Where does a giant refinery in Nigeria, Africa's largest oil producer, go to source the raw materials it needs to make fuels for the nation of 228 million people? Try crude fields around Midland in West Texas, about 6,500 miles away. This year, the mega plant Dangote, near the commercial capital Lagos, bought a third of its crude from the US — the lion's share of it being the grade West Texas Intermediate - Midland, ship tracking compiled by Bloomberg shows. The proportion has been almost double what it was in 2024, the ramp-up year.
Business Insider
05-06-2025
- Business
- Business Insider
Dangote hails Nigeria's emergence as Africa's leading cement exporter
Africa's richest man, Aliko Dangote, has hailed Nigeria's emergence as the continent's leading cement exporter, crediting strategic investments and local production capacity for transforming the country from a major importer into a dominant player in the African cement market. Aliko Dangote emphasized Nigeria's achievement as Africa's top cement exporter due to local investments and production capacity. Nigeria transitioned from being the world's second-largest cement importer to a dominant exporter in the region. Strategic industry advancements in Nigeria highlight the transformative power of local industrial investments. Dangote noted that Nigeria, once the second-largest importer of cement globally, now exports more cement than any other African country, thanks to massive local investment in production capacity. Aliko Dangote, Africa's richest man and President of the Dangote Group, delivered a compelling address at the recently held Gates Foundation Goalkeepers event in Nigeria, showcasing the country's progress in health and business sectors. Speaking alongside philanthropist Bill Gates, Dangote emphasized the impact of strategic partnerships and domestic investment in reversing long-standing challenges. Shifting to the business sector, Dangote emphasized the transformative role of industrial investments in reversing Nigeria's dependency on imports. 'Nigeria used to be the second-largest importer of cement in the world,' he said. ' Now we export more cement than any other African country.' Dangote's cement export milestone Nigerian-based Dangote Cement is Africa's largest cement producer, boasting a total installed capacity of 48.6 million tonnes per annum (Mt/a) across the continent. Of this, 32.3 Mt/a is installed within Nigeria, while the remaining 16.3 Mt/a capacity is spread across nine other African countries, including Tanzania, South Africa, Ethiopia, Cameroon, Republic of Congo, Ghana, Senegal, Zambia, and Sierra Leone. To reaffirm its status as Africa's largest cement producer, Dangote Cement last year announced the dispatch of seven shipments of clinker from Nigeria to Ghana and Cameroon. The company also reported that clinker exports for the first quarter of 2024 surged by 87.2 percent, reaching 264,000 metric tonnes, marking a significant milestone in Nigeria's transition from a bulk cement importer to a major exporter in the region. Clinker is a solid, granular substance formed by heating limestone and other raw materials in a kiln. It is the intermediate product in cement production and is ground into fine powder and blended with gypsum to produce finished cement. Until recently, Nigeria ranked among the world's largest importers of cement. However, sustained investments in local manufacturing—led by Dangote Cement—have enabled the country to not only meet domestic demand but also expand into regional markets. Sources within the company indicate that clinker exports are set to increase significantly in the coming months as Dangote Cement scales up operations and targets additional African destinations.
