Africa loses an estimated $90 billion annually due to its continued dependence on imported substandard refined petroleum products, according to Aliko Dangote, President of Dangote Industries Limited.
Speaking at the ongoing Afreximbank Annual Meetings and AfriCaribbean Trade and Investment Forum in The Bahamas, Dangote said the continent’s lack of refining infrastructure forces African countries to import over 120 million tonnes of refined petroleum products yearly.
This, he said, has led to capital flight, job losses, and environmental hazards from low-quality fuels that would not meet standards in developed markets.
Despite producing approximately 7 million barrels of crude oil daily, Africa refines less than 40% of its consumption locally and imports the remaining volume, often as inferior fuel that exacerbates public health and environmental risks.
Dangote described the practice as economically unsustainable, citing Africa’s paradox of being rich in crude but poor in refining.
“Instead of creating value within the continent, we are exporting jobs and importing poverty,” Dangote stated. “We are the only continent that exports raw materials and imports finished products at such a scale, and it must stop.”
The industrialist highlighted the severe impact of substandard fuel on the continent’s economy, noting that the lack of harmonised fuel standards across African nations allows for dumping of rejected petroleum products.
He also attributed high logistics costs to inefficient port infrastructure, revealing that freight costs account for nearly 40% of total delivery expenses to his refinery.
Dangote, whose 650,000 barrels-per-day refinery in Lagos is the largest in Africa and one of the largest single-train refineries globally, urged African governments to implement structural reforms to support local refining capacity.
He called for the adoption of a unified fuel specification policy similar to those used in the United States, Canada, and the European Union.
He further appealed to regulators to incentivize domestic refining, protect investments in infrastructure, and reduce reliance on external supply chains that undermine Africa’s energy security and economic development.
“The key to solving our energy poverty is in our hands. We must fix our refineries, enforce common fuel quality standards, and stop the capital drain,” Dangote added.
The comments come as several African countries continue to grapple with foreign exchange challenges, energy price volatility, and inflation driven in part by fuel import dependence.
Analysts have noted that the success of the Dangote Refinery could reduce the continent’s reliance on fuel imports, support industrial development, and strengthen regional energy integration.
However, policy harmonization, port reforms, and a coordinated approach to energy infrastructure remain critical to achieving long-term sustainability.
