By Our Reporter
President of the Dangote Group, Aliko Dangote, has raised alarm over what he described as a deliberate attempt by powerful international oil traders to sabotage refinery development in Africa through a floating offshore market based in Lome, Togo.
Speaking at the Global Commodity Insights Conference on West Africa, jointly organized by the Nigerian Midstream and Downstream Petroleum Regulatory Authority and S&P in Abuja on Tuesday, Dangote accused the operators of the offshore market of crashing fuel prices to undercut his refinery’s impact.
“International traders maintain floating storage of about two million tonnes of petroleum products just offshore,” he said.
“These were being sold at inflated prices due to Africa’s lack of refining capacity. But the moment our refinery became operational, they slashed prices in a bid to kill competition.”
Dangote described the market as a “uniquely African phenomenon,” one that serves no purpose other than to protect entrenched interests and suppress the rise of domestic refining. According to him, the floating market in Lome exists specifically “to ensure that no refinery operates in Sub-Saharan Africa.”
“Make no mistake,” he warned, “those who profit from this system will do everything they can to prevent other refineries from emerging. I don’t see any new major refining project succeeding while that Lome system remains in place.”
He called for urgent intervention through policy harmonization, regional cooperation, and strong political will, stressing that without government backing, no new large-scale refinery can survive in Africa.
“You are not just innovating when you build a refinery in Africa,” Dangote said. “You are disrupting a corrupt, rent-seeking system—and the beneficiaries of that system will fight back.”
In addition to the offshore threat, Dangote identified Africa’s fragmented fuel specifications as another major barrier to regional trade. Unlike Europe, which operates under harmonised fuel standards, most African countries have separate—and often incompatible—requirements.
“The fuel we produce for Nigeria can’t be sold in Cameroon, Ghana, or Togo, even though we all drive the same cars,” he lamented.
“It’s a regulatory absurdity that only benefits international traders exploiting price differences.”
He cited Nigeria’s diesel standard as an example. The required “cloud point” for diesel in Nigeria is 4°C, which increases production costs and limits the types of crude oil that can be processed. Yet, very few parts of Nigeria experience such low temperatures, he noted.
Dangote urged African regulators to address these inefficiencies, calling the harmonisation of fuel standards a “low-hanging fruit” that could greatly benefit the continent’s industrial and energy future.
“If we don’t fix this,” he said, “Africa will remain trapped in a cycle of dependency, inefficiency, and foreign control—despite having the resources and talent to build its own energy security.”