Speaking at the Nigerian International Energy Summit held from February 2 to 5 in Abuja, the Chief Executive Officer of Ghana’s National Petroleum Authority (NPA), Godwin Kudzo Tameklo, stated that Ghana’s two main refineries are too small to meet local fuel demand. 

Tameklo explained that Ghana has already initiated discussions with the Dangote Petroleum Refinery to develop a commercial relationship. 

“In Ghana, what we have tried to do as a country is to operate two major refineries and a modular refinery of about 5,000 to 6,000 barrels per day, which is quite small,” he said. “When you talk about 6,000 barrels per day in the Nigerian context, it is insignificant, but in Ghana it is considered a sizeable refinery. We have always relied on imports, both crude oil and refined products . Ghana therefore represents a strong offtake market for the Dangote Refinery.”

“We have had extensive engagements with Alhaji Aliko Dangote to position Ghana to take refined products from Nigeria. Given the proximity between Ghana and Nigeria, increased reliance on Nigeria’s refined petroleum products will help us reduce the cost of fuel delivered to Ghana,” he added.

Devakumar Edwin, Group Vice President (Oil and Gas) of the Dangote Group, confirmed that the refinery has the capacity to serve both domestic and export needs.

“The refinery has an installed capacity of 650,000 barrels per day and is currently operating at about 85%, with steady progress toward full utilisation,” he told local publication Vanguard . 

“Nigeria needs only about 50% of our production capacity to meet its petrol and diesel requirements. This leaves significant volumes available for export, and with planned expansions, export volumes will increase further,” he added.

In 2024, Ghana’s oil regulator had indicated the country could purchase refined petroleum from the Dangote Refinery once it reached full operation, potentially replacing monthly European imports valued at $400 million.

Two years earlier, during the Africa CEO Forum Annual Summit in Kigali, Rwanda, Aliko Dangote had criticised the continent’s reliance on fuel imports from outside Africa, stating: “Our capacity is too big for Nigeria, but it would also supply West Africa, Central Africa and South Africa.”

The operation was led by Sasol Petroleum Mozambique, Limitada, in partnership with the Mozambican government and the state-owned National Hydrocarbons Company (ENH) under a Production Sharing Agreement (PSA).

The IPF, among the most advanced facilities of its kind in Africa, is designed to produce up to 30,000 tonnes of LPG per year. According to Sasol, this could reduce Mozambique’s LPG imports by approximately 70%, making gas supply more affordable, reliable, and locally available, as in countries like Nigeria , Algeria, and Egypt

“This is a significant step towards monetising natural gas within the country and creating greater value for the domestic market,” said Ovídio Rodolfo, Sasol’s managing director in Mozambique.

The LPG is sourced from natural gas reserves in the Inhassoro and Govuro fields and processed through advanced separation and treatment systems that ensure cleaner, safer fuel for household use.

On the African continent, Algeria remains the continent’s largest LPG producer , with over 8.1 million tonnes annually, accounting for more than half of Africa’s total output. Nigeria follows with about 1 million tonnes, despite facing logistical and infrastructural hurdles in domestic distribution. Egypt produces 1.9 million tonnes per year, supported by robust infrastructure.

Around 589,000 litres of illegally refined petroleum products were seized, and 20 people were arrested, according to Lieutenant Colonel Danjuma Jonah Danjuma, a military spokesperson.

He said the operation is part of a wider push to tackle crude oil theft, which continues to hurt Nigeria’s economy and security.

The country lost more than $3 billion in 2023 due to stolen oil and damage to pipelines , according to Nigerian officials.

The army said it would continue its operations to protect national resources and ensure that oil benefits the country as a whole.

Iran has formally condemned reports that U.S. President Donald Trump may refer to the Persian Gulf as the "Arabian Gulf" or "Gulf of Arabia" during his visit to Arab states. Foreign Minister Abbas Araghchi stated that any such move would be seen as a hostile act and would provoke strong backlash from the Iranian public. Araghchi emphasised that the name "Persian Gulf" is historically established and politically neutral, warning that efforts to change it are politically motivated and unacceptable.

Iran retains world’s lowest gasoline prices 

Iran continues to offer the world’s cheapest gasoline at IRR15,000 per litre ($0.018), according to Global Petrol Prices data released on May 8. Despite leading in low petroleum prices, the country faces economic pressure due to a sharply devalued rial and limited fiscal space. Government efforts to raise fuel prices risk triggering public unrest, as seen during past protests. Iran’s subsidised fuel costs remain less than one-third of Saudi Arabia’s rate of $0.62 per litre — the lowest among G20 nations.

Israel issues direct warning to Iran following Houthi attack

Israel’s Defence Minister, Israel Katz, issued a warning on Thursday, May 8, indicating that Iran will be held directly accountable for attacks by its regional proxies. The statement followed a recent assault on Ben Gurion Airport by Houthi rebels, a group backed by Iran. Katz stated that the proxy strategy employed by Iran is over, asserting that Iran will face the same consequences as groups such as Hezbollah in Beirut, Hamas in Gaza, and the Assad regime in Damascus. He emphasised Iran’s direct responsibility for financing and arming the Houthis, declaring that similar retaliatory measures could be taken against Tehran.

U.S. sanctions third Chinese refinery over Iranian oil purchases

The U.S. Treasury Department on Thursday imposed sanctions on China’s Hebei Xinhai Chemical Group and three companies operating a port terminal in Dongying, Shandong province. The entities were sanctioned for purchasing or facilitating the delivery of Iranian oil valued in the hundreds of millions of dollars. This marks the third Chinese independent refinery, known as a “teapot,” sanctioned by the Trump administration under its renewed “maximum pressure” campaign. The policy seeks to block Iran’s oil export revenues to influence nuclear negotiations and limit Tehran’s support for militant groups in the Middle East.

India, Iran discuss bilateral ties and security concerns

India and Iran convened the 20th Joint Commission Meeting (JCM) to review and advance bilateral cooperation . The meeting coincided with the 75th anniversary of the India-Iran Friendship Treaty. During the discussions, India informed Iran of Pakistan’s alleged involvement in the April 22 Pahalgam terror attack, which resulted in 26 civilian deaths. The Indian Ministry of External Affairs stated that both sides examined a wide range of topics, including trade, agriculture, healthcare, cultural exchange, connectivity, and people-to-people ties. Iranian Foreign Minister Dr. Abbas Araghchi, on his first visit to India since taking office in August 2024, held meetings with External Affairs Minister Dr. S. Jaishankar, President Droupadi Murmu, and National Security Adviser Ajit Doval. His visit followed a prior trip to Pakistan.

For the first time , crude oil has surpassed soybeans to become Brazil’s leading export, accounting for 13.3% of the nation’s total export volume.

Petrobras President Magda Chambriard described the shift as “a significant milestone” in Brazil’s export trajectory.

However, beneath this surge in crude shipments lies a concerning structural vulnerability, Brazil’s insufficient domestic refining capacity.

Despite being among the top ten oil-producing countries globally, Brazil exports over half (52.1%) of its oil output in unrefined form. Much of that crude oil returns to the country in the form of imported fuels such as gasoline and diesel. Currently, Brazil imports approximately 10% of its gasoline and a staggering 25% of its diesel requirements.

“For a very, very long time, these guys have made a lot of money from oil imports,” Semafor quotes Dangote, adding, “They are determined to see that our refinery does not work easily.”

The Dangote Refinery, located in Lagos State and with a capacity to process 650,000 barrels of crude oil per day, began distributing petrol to Nigerians in September 2024. However, it has encountered multiple setbacks, including difficulties sourcing local crude, a surprising challenge for a country that is Africa’s largest crude oil producer.

“We’re fighting, and the fight is not yet finished,” Dangote told the audience. “But I have been fighting all my life and I am ready, and hundred percent sure I will win at the end of the day.”

The refinery is one of Africa’s most ambitious industrial undertakings, and its success is viewed as critical to reducing Nigeria’s reliance on fuel imports, curbing foreign exchange outflows, and strengthening local energy security.

This shortage has significantly impacted daily life, with transportation costs soaring and many people struggling to get to work or school.

Residents who spoke to AFP shared how they wait in line for hours, sometimes from early morning until afternoon, just to get a few litres of petrol.

"You always use fuel to deliver to customers. So sometimes there is pressure on our heads because a customer will order food, they'll be waiting for their food and, that's when you run low on petrol or something like that. Meanwhile, we transport food. We pick up food and deliver it to customers. And still, when you reach the first filling station (on your way, ed.), it can take about 40-45 minutes (to get fuel). At the end of the day, it's a headache because the customer rejects their food because either it got cold or it took too long," said Ismael Abdullai, a delivery bike rider for a food delivery company.

Sola Adewusi, a private driver also added "It's bad because of our leaders, they are bad. Because I don't see a reason why Nigeria would be a place where there is no fuel. There is no refinery. So that is the problem we have in Nigeria, no refinery. And they are bringing (the fuel from abroad, ed.), all these cabals, they don't want us to live. Everything is expensive. Both food (and fuel, ed.). Getting the fuel that allows us to bring food to our table is a problem. We have been in this queue now for more than four hours. I don't know when I will get the fuel."

The removal of subsidies by President Bola Tinubu, which previously kept petrol prices artificially low has led to a sharp increase in fuel prices.

Meanwhile, Nigerian army troops Wednesday, August 14 said it had destroyed at least 27 illicit refining sites and confiscated stolen crude oil after raiding illegal oil bunkering sites in the Niger River delta.

Dangote, whose ambition has been to venture and explore the oil and gas industry in Africa has had his project embroiled in an impasse with regulators over allegations Dangote is trying to monopolise the market for refined products.

Government’s Position

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has accused Dangote of requesting a ban on diesel and aviation fuel imports to benefit his refinery, a move they argue would create a monopoly and compromise energy security. 

The NMDPRA has also raised concerns about the quality of diesel produced by the refinery, claiming it is inferior to imported diesel, which has a lower sulfur content of 50 ppm compared to the refinery's 650-1,200 ppm.

Chief Executive of NMDPRA, Farouk Ahmed stated that relying solely on Dangote’s refinery is not feasible for national energy security and market stability. He emphasised the need for competition and high-quality standards in the petroleum market.

“We cannot rely heavily on one refinery to feed the nation, because Dangote is requesting that we should suspend or stop importation of all petroleum products, especially AGO and direct all marketers to the refinery, that is not good for the nation in terms of energy security. And that is not good for the market, because of monopoly.  In terms of quality, currently the AGO quality in terms of sulphur is the lowest as far as the West African requirement of 50 ppm is concerned. Dangote refinery and some modular refineries, like Waltersmith refinery and Aradel refinery, are producing between 650 to 1,200ppm. So, in terms of quality, their product is much more inferior to the imported quality,” he said. 

Dangote’s Position

Dangote and his team have accused international oil producers of selling locally produced crude to the refinery at above-market prices. 

They have also criticised the lack of government incentives, stating that the refinery did not receive any financial support from the Nigerian government and had to pay $100 million to acquire over 2,600 hectares of land.

In response to these challenges from the government’s side, Dangote has asserted that the diesel produced by his refinery is the best available in Nigeria. Tests conducted at the refinery showed diesel with 87 parts per million (ppm) of sulfur, compared to imported varieties that tested above 1,800 ppm. The refinery aims to reduce sulfur content to 10 ppm by the end of the month.

Reactions and Implications

The Dangote Group’s Chief Strategy Officer, Aliyu Suleiman, has rebutted the government's claims, suggesting that statements made by the regulator could be perceived as representing the government's stance, thus complicating the situation.

“If the regulator himself is making that statement, it can be seen almost as a statement that has come from the government and that’s what makes this different,” said Suleiman.

The Dangote Refinery aims to meet Nigeria’s domestic demand for refined petroleum products and reduce dependence on imports. 

Dangote highlighted the ongoing fuel crisis in Nigeria since the 1970s and asserted that his refinery could play a crucial role in resolving the issue. "This refinery can help in resolving the problem but it does appear some people are uncomfortable that I am in the picture. So I am ready to let go, let the NNPC buy me out, run the refinery," he added.

The billionaire businessman addressed the allegations after Farouk Ahmed, CEO of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, claimed that the Dangote refinery had asked the regulator to stop issuing import licenses to other marketers, aiming to be the sole fuel supplier in Nigeria, according to local media Punch .

In May, speaking at the Africa CEO Forum Annual Summit in Kigali, Rwanda, Dangote asserted that his refinery could meet Africa's aviation fuel demands, emphasising that Nigeria has no reason to import gasoline from anywhere else in the world.

Commissioned in February, the Dangote refinery, which produces 650,000 barrels of gasoline per day, is reported to be Africa’s largest oil refinery and the world ’s biggest single-train facility.

“The refinery will meet 100% of Nigeria’s refined product requirements and have a surplus for export, creating a market for $21 billion per annum of Nigerian crude,” Dangote stated.

Matawalle lauded Dangote’s significant investments and highlighted their positive impact on the Nigerian economy through wealth creation and job generation. He also emphasised the Bola Tinubu-led administration’s commitment to providing security to maintain high production levels at the multi-billion-dollar refinery.

In May, Dangote, while speaking at the Africa CEO Forum Annual Summit in Kigali, Rwanda, revealed that his refinery, the largest in Africa, can fulfil Nigeria’s fuel demands and supply fuel to West Africa and Central Africa starting this June.

“Nigeria shouldn’t import anything like gasoline; not one drop of a litre. We have enough gasoline to give to at least the entire West Africa, and diesel to give to West Africa and Central Africa. We have enough aviation fuel to give to the entire continent and also export some to Brazil and Mexico,” he said.

Dangote said that his refinery can also provide fuel for Africa's aviation demands, declaring that his country, Nigeria has no reason to import gasoline from any part of the world from June.

"Right now, Nigeria has no cause to import anything apart from gasoline and by sometime in June, within the next four or five weeks, Nigeria shouldn’t import anything like gasoline; not one drop of a litre. We have enough gasoline to give to at least the entire West Africa, and diesel to give to West Africa and Central Africa. We have enough aviation fuel to give to the entire continent and also export some to Brazil and Mexico,” he is quoted by Nigerian media Punch Newspaper .

The Nigerian billionaire explained that it is not normal for Africa to continuously import from other continents when the region has enough raw materials to make it self-sufficient.

“Today, our polypropylene and our polyethene will meet the entire demand of Africa and we are doing base oil, which is like engine oil, we are doing linear benzyl, which is raw material to produce detergent. We have 1.4 billion people in the population, nobody is producing that in Africa. “So, all the raw materials for our detergents are imported. We are producing that raw material to make Africa self-sufficient. As I said, give us three or a maximum of four years and Africa will not, I repeat, not import any more fertilizer from anywhere. We will make Africa self-sufficient in potash, phosphate, and urea, we are at three million tonnes and in the next twenty months, we will be at six million tonnes of urea which is the entire capacity of Egypt. We are getting there,” he added.

Dangote refinery, commissioned in Nigeria in February, has since made efforts to improve the availability of fuel in the country. The refinery is reported to be Africa’s biggest oil refinery and the world’s biggest single-train facility and produces 650,000 barrels of gasoline per day.

“Our capacity is too big for Nigeria, but it would also supply West Africa, Central Africa and South Africa. We have 650,000 barrels per day, 1 million tonnes of polypropylene, we have 590,000 carbon black, that is the raw materials ink, dyes and co. We are expanding more. This is the first phase and we are going out to the next phase which will start early next year,” Dangote said.

Nigeria has retained its position as the largest oil producer in Africa, the Organisation of the Petroleum Exporting Countries (OPEC) indicated.

Ghana, Mozambique, Equatorial Guinea, Tanzania, Algeria, Libya, and South Africa are also significant contributors to Africa's oil and gas sector, according to Narh. Each of these countries has unique reserves and investment opportunities.

Narh added that Namibia has recently captured attention due to the discovery of resources such as the Kudu Gas Field and Osprey Oil Field.

According to World Oil , the Kudu offshore field has proven reserves of around 1.3 trillion cubic feet of gas. However, due to recent findings of hydrocarbons, Namibia's potential natural gas reserves in the Orange Basin could increase significantly, primarily due to the associated gas uncovered in these recent discoveries.

These discoveries according to Narh "indicate the existence of substantial hydrocarbon reserves. If managed prudently, they have the potential to drive economic expansion, generate employment opportunities, and foster technological progress," he told Global South World.

International media Reuters reported that Africa holds around 13% of the world's natural gas and 7% of its oil but has the world's lowest per capita energy use.

In the foreseeable future, Africa will require oil and gas to address its energy access deficits, yet there are obstacles to overcome. According to a 2022 study by McKinsey Insights , numerous African economies are heavily dependent on income generated from oil and gas. However, extracting oil in Africa typically involves higher costs and greater environmental consequences than other geographical areas.

With energy demand in Africa outpacing available supply, Narh explained that Africa is making efforts towards developing its oil and gas sector through investments and policies which are going in the right direction.

"Africa's oil and gas sector has been experiencing increasing investment from both domestic and foreign companies. Many African governments have been implementing policies to attract investment and promote exploration and production activities," Narh said.

"Additionally, technological advancements have made it possible to explore and develop oil and gas reserves in previously inaccessible areas, further expanding the sector's potential in Africa," he added.

Despite the efforts by African governments to make full use of the oil and gas sector, Narh indicated that "the potential of Africa's oil and gas sector also comes with challenges. These challenges include political instability, regulatory uncertainties, infrastructure deficits, environmental concerns, and fluctuating oil prices."

"Addressing these challenges effectively will be crucial for unlocking the full potential of the sector and ensuring sustainable development," Narh remarked.

Niger’s new move follows severance of ties with France and the US.

“There is no shadow over this as we have safeguarded the interests of our country," said Prime Minister Ali Mahaman Lamine Zeine 

Notably, CNPC has already constructed a substantial 1,200-mile pipeline to facilitate the transportation of oil from Niger to its neighbouring country, Benin. This infrastructure investment is part of a larger $4.6 billion commitment by CNPC to bolster Niger's petroleum industry.

Economic projections suggest a growth surge of over 12% for Niger's economy this year, positioning it as one of the fastest-growing in sub-Saharan Africa, as stated by the World Bank. For Niger, this loan agreement is perceived as a crucial lifeline, particularly for its military junta, which assumed power in July of the previous year.  

Forecasts from S&P Global Commodity Insights further indicate that Niger is ready to commence shipping 90,000 barrels per day this month, with expectations of this figure increasing to 110,000 barrels per day. 

What they said

Eugene Lindell, head of refined products at consultancy FGE, highlighted concerns about the impact of losing the West African market on certain refineries that lack the capability to upgrade gasoline to meet European and U.S. specifications, which have more stringent environmental standards. "The loss of the West African market will be problematic for a small set of refineries that do not have the kit to upgrade their gasoline to European and U.S. specification," he is quoted by Reuters . Further, a European refinery executive, who chose to remain anonymous, noted that coastal refineries focused on exports are at higher risk compared to inland refineries, which are less vulnerable due to their reliance on local demand. "The changes won't happen overnight, but they could ultimately lead to closures of refineries and their conversion to storage terminals," he said.

What they said

The President of Dangote Group, Aliko Dangote, said, “We have started the production of diesel and aviation fuel, and the products will be on the market before the end of the month. This is a big day for Nigeria. We are delighted to have reached this significant milestone," he said in a statement. Dangote highlighted the refinery's role in fulfilling the group's vision of promoting self-sufficiency and global competitiveness. The facility, set to reach full production later in the year, is designed to meet the highest quality standards, delivering high-value products. He emphasised that once the refinery is fully operational, approximately 40% of its capacity will be available for export, ushering in substantial foreign exchange inflows into the country. “Once our plant is fully on stream, we expect that at least 40 per cent of the capacity will be available for export, and this will result in significant foreign exchange inflows into the country. Beyond this, we intend to ensure that our plants are run at the highest capacity of utilisation and the highest efficiency to enable us to export competitively to other markets,” he added.

What they said

“The Government of Angola hereby communicates the decision to withdraw from the Organization of Petroleum Exporting Countries, with effect from January 1, 2024, in accordance with Presidential Decree No. 233/23 of December 21”, the Ministry of Mineral Resources and Petroleum said, quoted by local media Angop .

The practice of flaring, or burning waste gas during oil drilling, is widespread among petrochemical companies in the Persian Gulf region, contributing to the deterioration of air quality across the area.

New research indicates that toxic gases, spreading for hundreds of kilometers, have led to a significant decline in air quality throughout the region. 

Despite the UAE implementing a ban on gas flaring two decades ago, recent images reveal that the practice persists, raising concerns about health hazards. The UAE, a major oil supplier to the British market, is under scrutiny for the continuation of this environmentally harmful activity.

Iran, ranking third globally in gas flaring after Russia and Iraq, has made promises to phase out flare torches, yet these commitments remain unfulfilled. Even oil companies such as BP and Shell, operating in fields where flaring occurs, have acknowledged efforts to reduce the practice.

Leaked documents published by the BBC on Monday suggest that the UAE may exploit its role as the host of the UN climate change conference to secure new oil and gas deals. 

Robert Boyd, the UN special rapporteur on human rights and the environment, expressed deep concern over the findings, highlighting that major companies and oil-producing countries in the Middle East are neglecting their responsibility to address air pollution caused by fossil fuels.

The pollutants resulting from flaring, including PM2.5, ozone, nitrogen dioxide (NO2), and benzoalphapyrene (BaP), have been linked by international experts, including the World Health Organization, to serious health issues such as stroke, cancer, asthma, and heart disease when exposure occurs in high volume or over an extended period.

Moreover, flaring remains a significant contributor to greenhouse gas emissions, releasing carbon dioxide and methane, and exacerbating global warming. 

The urgency of addressing this environmental crisis underscores the need for comprehensive and immediate action at the international level.