Aliko Dangote Exposes Offshore Fuel Cartels Threatening Africa’s Energy Independence
Africa’s richest man, Aliko Dangote, has sounded the alarm over the growing influence of black market fuel cartels operating in offshore waters across the continent.
He warned that these illicit networks are actively sabotaging efforts to build domestic refining capacity by manipulating prices and supply chains—particularly through maritime fuel trading hubs like Lomé, Togo.
Speaking at the Global Commodity Insights Conference on West Africa in Abuja—organized by the Nigerian Midstream and Downstream Petroleum Regulatory Authority in partnership with S&P Global—Dangote criticized international fuel traders for taking advantage of Africa’s historically limited refining capacity.
“The market is a uniquely African phenomenon,” Dangote said. “International traders maintain floating storage of about two million tonnes of petroleum products offshore.
These are sold at inflated prices because of our lack of refining capacity. But the moment the Dangote Refinery came online, they crashed the prices deliberately.”
He argued that this pricing strategy was not coincidental but a calculated move to protect the profits of offshore players who benefit from Africa’s dependency on imported fuel.
“Make no mistake,” he continued, “those who profit from this broken system will do everything they can to prevent new refineries from succeeding.
The entire offshore fuel trade around Lomé exists to ensure no refinery thrives in Sub-Saharan Africa.”
Dangote warned that these shadow networks are distorting supply chains and undercutting prices in a way that deters future investment in large-scale refining infrastructure.
“We cannot continue to allow a parallel oil economy to dictate the fate of Africa’s energy self-sufficiency,” he stressed.
His comments come at a time when African governments are pushing for more private sector investment in refining capacity, with the aim of reducing reliance on imported fuel and keeping more value within local economies.
Despite these efforts, Africa—particularly West Africa—remains heavily dependent on fuel imports. According to Farouk Ahmed, head of Nigeria’s Midstream and Downstream Petroleum Regulatory Authority, nearly 69% of gasoline consumed in the region is still imported.
West Africa trades approximately 2.05 million metric tonnes of gasoline every month, yet only 31% is supplied by local refineries.
A Disjointed Market
Even as the region emerges as a major hydrocarbon producer and refining hub, the lack of harmonized fuel standards across African countries poses a significant challenge. Dangote highlighted how disjointed regulations hamper regional trade.
“Fuel refined in Nigeria cannot be sold in Ghana, Togo, or Cameroon—even though they use the same vehicles,” he noted.
This lack of regulatory cohesion creates opportunities for international traders to exploit price differences across fragmented markets, further undermining Africa’s path to energy independence.
Conclusion
Africa’s push for fuel self-sufficiency depends not only on expanding refining infrastructure but also on policy harmonization, regional cooperation, and stricter enforcement against black market operations.
Dangote’s remarks underscore the urgent need to dismantle parallel oil economies and establish a unified, transparent fuel market that truly serves African interests.
