Fuel Crisis Looms as Ghana, Kenya, Others Shift to Dangote Refinery for Supply

Fuel Crisis Looms as Ghana, Kenya, Others Shift to Dangote Refinery for Supply

Several African countries, including Ghana and Kenya, are increasingly turning to Nigeria’s Dangote Petroleum Refinery for fuel supply amid growing concerns over disruptions in the Middle East.

The shift comes as tensions involving Israel, United States and Iran raise fears over the security of the Strait of Hormuz, a critical channel for global oil exports.

For decades, many African nations have depended heavily on refineries in the Persian Gulf for their refined petroleum needs. However, the current uncertainty has forced governments and energy companies to explore alternative supply sources closer to the continent.

At the centre of this shift is Africa’s richest man, Aliko Dangote, whose 650,000-barrel-per-day refinery near Lagos is emerging as a vital supply hub.

The $20 billion facility, which began operations in 2024, has been ramping up output and is now witnessing increased demand from across Africa as countries move to avert potential fuel shortages.

Industry sources indicate that several governments are already in discussions to secure long-term supply agreements with the refinery, reflecting growing urgency to stabilise fuel availability.

The development underscores Africa’s long-standing dependence on imported refined products; even among oil-producing nations. Until recently, Nigeria exported crude oil for refining abroad and re-imported finished products at higher costs.

Although the Dangote refinery has begun to reverse that trend, domestic consumption in Nigeria still accounts for a large share of its output, limiting volumes available for export.

Energy analysts warn that the refinery alone may not be sufficient to meet the continent’s needs, particularly as many African countries lack adequate strategic reserves to cushion prolonged supply disruptions.

In response, some governments are already implementing contingency measures. Ethiopia has urged citizens to conserve fuel, while companies in other countries are moving to secure supplies for essential operations.

The scramble for fuel is expected to intensify competition among African buyers, potentially driving up costs and increasing pressure on supply chains.

Speaking on the situation, Dangote said availability, rather than pricing, has become the primary concern.

“Right now it is not about pricing, it’s about availability. I think the situation will continue for a while,” he said.

Analysts say the evolving crisis is accelerating the push for regional refining capacity, with Nigeria’s Dangote refinery positioned at the forefront of efforts to reduce Africa’s exposure to global energy shocks.