Aliko Dangote, the Chairman of the Dangote Group and Africa’s wealthiest individual has announced that Nigeria is poised to attain fuel independence by next month.

Dangote made this assertion during his participation as a panelist at the Africa CEO Forum Annual Summit held in Kigali.

The announcement comes as a result of the Dangote Refinery’s ambitious plan, which aims to eliminate the need for Nigeria to import premium motor spirit (PMS), commonly known as petrol, within the next four to five weeks.

According to Dangote, the refinery already operational in supplying diesel and aviation fuel within Nigeria, possesses the capacity to fulfill the diesel and petrol requirements of West Africa and cater to the aviation fuel demands of the entire African continent.

Dangote expressed unwavering confidence in the refinery’s capabilities, stating, “Right now, Nigeria has no cause to import anything apart from gasoline and by sometime in June, within the next four or five weeks, Nigeria shouldn’t import anything like gasoline; not one drop of a litre.”

He said the refinery is committed to ensuring self-sufficiency in the continent’s energy needs, highlighting its capacity to significantly reduce or eliminate the need for fuel imports.

The Dangote Refinery’s accomplishment marks a pivotal moment in Nigeria’s quest for energy independence. With the refinery’s robust infrastructure and advanced technology, Nigeria is poised to become a net exporter of refined petroleum products, bolstering its economic stability and reducing its reliance on foreign imports.

Dangote’s remarks underscored the transformative potential of the refinery, not only for Nigeria but for the entire African continent.

He emphasized the refinery’s role in fostering regional energy security, asserting, “We have enough gasoline to give to at least the entire West Africa, diesel to give to West Africa and Central Africa. We have enough aviation fuel to give to the entire continent and also export some to Brazil and Mexico.”

Dangote further outlined the refinery’s broader vision for Africa’s economic advancement and detailed plans to expand its production capacity and diversify its product range.

He highlighted initiatives aimed at promoting self-sufficiency across various sectors, including agriculture and manufacturing, with the ultimate goal of reducing Africa’s dependence on imports and creating sustainable economic growth.

Dangote’s vision for a self-reliant Africa resonates with his long-standing commitment to investing in the continent’s development.

He concluded his remarks by reiterating the refinery’s mission to transform Africa’s energy landscape and drive socio-economic progress across the region.

The global oil market witnessed a significant surge in prices as political upheaval rocked two of the world’s largest crude producers, Iran and Saudi Arabia.

Brent crude oil, against which Nigerian oil is priced, rose above $84 a barrel while West Texas Intermediate (WTI) oil climbed over the $80 threshold.

The sudden spike in oil prices followed a tragic incident in Iran, where President Ebrahim Raisi and Foreign Minister Hossein Amirabdollahian lost their lives in a helicopter crash.

Simultaneously, apprehensions over the health of Saudi Arabia’s king added to the geopolitical tensions gripping the oil market.

Saudi Arabia stands as the leading producer within the Organization of the Petroleum Exporting Countries (OPEC), while Iran ranks as the third-largest.

Despite these significant developments, there are no immediate indications of disruptions to oil supply from either nation.

Iranian Supreme Leader Ayatollah Ali Khamenei reassured that the country’s affairs would continue without interruption in the aftermath of the tragic event.

However, the geopolitical landscape remains fraught with additional concerns, amplifying market volatility.

In Ukraine, drone attacks persist on Russian refining facilities, exacerbating tensions between the two nations.

Moreover, a China-bound oil tanker fell victim to a Houthi missile strike in the Red Sea, further fueling anxiety over supply disruptions.

Warren Patterson, head of commodities strategy for ING Groep NV in Singapore, remarked on the market’s reaction to geopolitical events, noting a certain desensitization due to ample spare production capacity within OPEC.

He emphasized the need for clarity from OPEC+ regarding output policies to potentially break the current price range.

While global benchmark Brent has experienced a 9% increase year-to-date, largely driven by OPEC+ supply cuts, prices had cooled off since mid-April amidst easing geopolitical tensions.

Attention now turns to the upcoming OPEC+ meeting scheduled for June 1, with market observers anticipating a continuation of existing production curbs.

Despite the surge in oil prices, there’s a growing sense of bearishness among hedge funds, evidenced by the reduction of net long positions on Brent for a second consecutive week.

This sentiment extends to bets on rising gasoline prices ahead of the US summer driving season, indicating a cautious outlook among investors.

As the oil market grapples with geopolitical uncertainties and supply dynamics, stakeholders await further developments and policy decisions from key players to navigate the evolving landscape effectively.

The coming weeks are poised to be critical in determining the trajectory of oil prices amidst a backdrop of geopolitical turmoil and market volatility.

The Dangote Mega Refinery, situated near Lagos, Nigeria, is embarking on an ambitious plan to procure millions of barrels of US crude over the next year.

The refinery, established by Aliko Dangote, Africa’s wealthiest individual, has issued a term tender for the purchase of 2 million barrels a month of West Texas Intermediate Midland crude for a duration of 12 months, commencing in July.

This development revealed through a document obtained by Bloomberg, represents a shift in strategy for the refinery, which has opted for US oil imports due to constraints in the availability and reliability of Nigerian crude.

Elitsa Georgieva, Executive Director at Citac, an energy consultancy specializing in the African downstream sector, emphasized the allure of US crude for Dangote’s refinery.

Georgieva highlighted the challenges associated with sourcing Nigerian crude, including insufficient supply, unreliability, and sometimes unavailability.

In contrast, US WTI offers reliability, availability, and competitive pricing, making it an attractive option for Dangote.

Nigeria’s struggles to meet its OPEC+ quota and sustain its crude production capacity have been ongoing for at least a year.

Despite an estimated production capacity of 2.6 million barrels a day, the country only managed to pump about 1.45 million barrels a day of crude and liquids in April.

Factors contributing to this decline include crude theft, aging oil pipelines, low investment, and divestments by oil majors operating in Nigeria.

To address the challenge of local supply for the Dangote refinery, Nigeria’s upstream regulators have proposed new draft rules compelling oil producers to prioritize selling crude to domestic refineries.

This regulatory move aims to ensure sufficient local supply to support the operations of the 650,000 barrel-a-day Dangote refinery.

Operating at about half capacity presently, the Dangote refinery has capitalized on the opportunity to secure cheaper US oil imports to fulfill up to a third of its feedstock requirements.

Since the beginning of the year, the refinery has been receiving monthly shipments of about 2 million barrels of WTI Midland from the United States.