Africa’s richest man, Aliko Dangote, has sounded the alarm over the growing threat posed by offshore black market fuel cartels, warning that their activities are undermining refinery development across the continent.
Speaking at the Global Commodity Insights Conference on West Africa—organised by the Nigerian Midstream and Downstream Petroleum Regulatory Authority in collaboration with S&P Global in Abuja—Dangote said these underground networks, especially those operating around Lomé, Togo, manipulate fuel prices and supply chains to the detriment of Africa’s energy independence.
“These offshore traders maintain floating storage of nearly two million tonnes of petroleum products, selling at inflated prices due to limited refining capacity across Africa,” Dangote said. “Once the Dangote Refinery came online, they deliberately slashed prices to sabotage our operations.”
Related: Dangote Refinery Suspends Discounted Fuel Scheme Following Distribution Fraud
He described the situation as a strategic move to suppress local refinery growth. “The entire Lomé setup exists to ensure that no refinery thrives in Sub-Saharan Africa. As long as this shadow economy persists, no major refining project will succeed.”
Dangote accused the cartels of creating a parallel oil economy that distorts the market, discourages investment, and traps African nations in a cycle of fuel import dependency.
“These networks thrive on fragmented policies, exploiting the absence of unified fuel standards across African countries,” he added. “What is refined in Nigeria can’t be sold in Ghana or Cameroon due to differing regulations, even though the vehicles are the same.”
Despite reforms and increasing investment in refining capacity, West Africa still relies heavily on fuel imports.
According to Farouk Ahmed, head of the Midstream and Downstream Petroleum Regulatory Authority, 69% of gasoline consumed in the region is still imported, even though West Africa trades an average of 2.05 million metric tonnes monthly.
Dangote stressed the urgent need for African countries to harmonize fuel standards and policies to promote regional trade and support local refining initiatives.
“We cannot afford to let external traders control our energy destiny,” he declared. “Innovation without inclusion is incomplete. Africa must unite in building self-sufficient energy systems that serve the continent first.”
His remarks come amid a renewed push by African governments to attract private capital for refining infrastructure, aimed at cutting import dependence and retaining more value within the continent.
