Nigerian billionaire and industrialist Aliko Dangote has sounded a strong warning over the influx of heavily discounted Russian petroleum products into African markets, cautioning that the trend poses a serious threat to the continent’s budding refining industry.
Speaking at a major oil and gas conference held in Abuja, Dangote said Western sanctions on Russian oil have pushed Moscow to divert its fuel exports to Africa, often at steep discounts. While this may appear beneficial in the short term due to lower prices, he warned that the long-term impact could be devastating for African economies striving to build local refining capacity.
“We are increasingly facing the dumping of cheap, often toxic petroleum products,” Dangote said, drawing attention to the low-quality nature of many of the imports. “These are products that would never be allowed into Western countries due to environmental and health standards, yet they are flooding African markets unchecked.”
Dangote’s warning comes just months after the launch of his landmark $20 billion Dangote Refinery, located on the outskirts of Lagos. The facility, which is Africa’s largest refinery, boasts an initial refining capacity of 650,000 barrels per day and has already begun exporting petrol. Despite its potential to transform Nigeria’s fuel supply and reduce dependency on imports, the refinery is struggling to secure sufficient local crude oil, even as global competition from international traders intensifies.
In a bold move to expand its capabilities and compete more effectively on the global stage, Dangote announced plans to raise the refinery’s output to 700,000 barrels per day. However, he lamented the structural and regulatory challenges that continue to undermine investments in domestic refining across Africa.
One of the most significant concerns raised by the Nigerian billionaire is the thriving offshore floating oil market near Lomé, the capital of Togo. The area has become a hub where international traders reportedly store over two million barrels of petroleum products. Dangote described the market as a loophole exploited by global fuel merchants to evade regulations, undercut local refiners, and dump questionable fuel into African markets.
“That floating market is a major threat to our efforts,” Dangote stated. “It allows unregulated access to our region, enabling traders to bypass safety, quality, and pricing standards that African refineries are mandated to meet.”
Despite the continent producing nearly seven million barrels of crude oil per day, only about 40 percent of its fuel consumption is refined locally. This supply gap has made Africa an attractive destination for global fuel traders looking to offload surplus products, including Russian diesel and gasoil.
Russia’s redirection of oil products to Africa has gained momentum following Western sanctions over the invasion of Ukraine. Dangote noted that while Africa is still a relatively small market for Russian fuels compared to larger buyers like Turkey and Brazil, the impact is growing and becoming more disruptive for local industries.
In June 2025, Russian diesel and gasoil exports to African countries declined by 30 percent from the previous month, totalling about 0.7 million tonnes. However, analysts caution that fluctuations in Russian fuel shipments are influenced by broader geopolitical dynamics and may not signal a long-term decline.
Nonetheless, the presence of Russian fuel in African markets—often sold at bargain prices—is complicating efforts by African nations to establish self-reliance in refining and energy security.
Dangote urged African governments to implement tougher fuel quality standards and introduce protective tariffs to level the playing field for domestic refiners. He called for the adoption of regulatory frameworks aligned with those in Europe and North America to ensure that imported fuel meets environmental and health safety thresholds.
“Europe and America do not allow these products into their markets because of the dangers they pose,” Dangote said. “Why should Africa become the dumping ground for what others reject?”
He also appealed for stronger regional cooperation among African nations to harmonise fuel standards, combat illegal fuel imports, and incentivise investment in the refining sector. According to him, protecting local industry is not just about business—it is about creating jobs, securing energy independence, and promoting sustainable development across the continent.
The Dangote Refinery, which began exporting petrol in June, has already shipped over one million tonnes of fuel, but the company warns that unfair market competition and regulatory gaps are threatening the viability of further expansion. The refinery is expected to supply both local and regional markets, with the potential to meet much of West Africa’s demand for refined products.
Industry observers believe Dangote’s warnings should not be taken lightly. With Africa’s energy demand expected to grow significantly in the coming decades, the success or failure of major refining projects like the Dangote Refinery could set the tone for the continent’s energy future.
While cheap imports may offer short-term relief from high fuel prices, the long-term implications of undermining local refining capacity could be far more costly.
“Dumping destroys local investment,” said Dr. Wale Fatade, an energy policy expert based in Lagos. “African governments must decide if they want to keep chasing cheap fuel or build sustainable energy systems that create value and jobs at home.”
As geopolitical tensions continue to reshape global fuel flows, the pressure is mounting on African policymakers to respond decisively. Aliko Dangote, as both a businessman and industrial advocate, has once again placed the spotlight on a critical issue—one that could determine whether Africa takes control of its energy destiny or remains at the mercy of external forces.
