After Saudi shipment in February, Aliko Dangote’s refinery sends jet fuel to the U.S.

Key Points

• Dangote Oil Refinery shipped over 2 million barrels of jet fuel to the U.S. in March, strengthening its global energy footprint.
• The refinery’s growing output has cut Nigeria’s reliance on imported fuel to an eight-year low, reshaping the country’s energy sector.
• Nigeria’s policy shift on crude sales is raising costs for refiners, forcing Dangote to adjust fuel pricing amid rising operational expenses.

More than a month after shipping its first batch of aviation fuel to Saudi Arabia, the Dangote Oil Refinery has made another big move—supplying over 2 million barrels of jet fuel to the United States in March alone. The multibillion-dollar facility, owned by Africa’s richest man, Aliko Dangote, is rapidly expanding its footprint in global energy markets.

According to ship-tracking service Kpler, six vessels carrying around 1.7 million barrels of jet fuel have already arrived at U.S. ports this month. Another vessel, the Hafnia Andromeda, is set to dock at the Everglades terminal on March 29 with about 348,000 barrels.

This is another milestone for the refinery, which recently exported around 130 million liters of jet fuel to Saudi Arabia. Having already challenged European refiners on petrol exports, Dangote’s growing presence in the U.S. jet fuel market could push prices to a two-year high while helping airlines manage costs ahead of the busy summer travel season, analysts say.

Nigeria’s fuel Imports hit eight-year low

Since starting operations last year, the $20 billion refinery has reshaped Nigeria’s energy sector. By cutting the country’s dependence on imported fuel, it has forced European refiners to find new markets while positioning Nigeria as a net exporter of refined products like jet fuel, naphtha, and fuel oil.

Production has steadily increased. By mid-2024, the refinery was processing 350,000 barrels per day (b/d). That figure rose to 500,000 b/d in January 2025 and is expected to reach full capacity of 650,000 b/d next month—making it the seventh-largest refinery in the world.

The impact on Nigeria’s fuel market has been immediate. The country’s reliance on imported gasoline has dropped to an eight-year low, according to energy intelligence firm Vortexa. Meanwhile, S&P Global reports that Nigeria has started exporting refined petroleum products to neighboring countries—something that would have been unthinkable just a few years ago.

Dangote’s Refinery growth faces supply hurdles

Beyond the local market, the refinery has expanded its reach across Africa, supplying diesel and aviation fuel to Cameroon, Angola, Ghana, and South Africa. It has also sold jet fuel to Saudi Aramco, the world’s largest oil producer, reinforcing its growing influence in global energy trade.

But growth hasn’t come without challenges. The refinery has struggled at times to secure crude oil and has never relied solely on Nigerian supply. In October 2024, Dangote Group dismissed reports that it accused the Nigerian National Petroleum Company (NNPC) of failing to meet supply commitments. “We have never accused NNPC of not supplying us with crude,” the company said in a statement.

Now, a new challenge has emerged. The NNPC recently scrapped its naira-for-crude swap deal, a policy shift that forces local refiners—including Dangote’s—to buy crude from international suppliers and pay in U.S. dollars instead of naira. The change is expected to raise operational costs and could lead to higher fuel prices.

Dangote adjusts fuel sales amid policy shift

In response, Dangote Petroleum Refinery has temporarily stopped selling petroleum products in naira to avoid a mismatch between revenue and crude purchase costs. The company noted that so far, its naira sales have exceeded the value of naira-denominated crude received. “As soon as we receive an allocation of naira-denominated crude cargoes from NNPC, we will promptly resume petroleum product sales in naira,” it said.

NNPC’s sudden policy reversal has left refiners scrambling. The naira-for-crude deal, introduced in October 2024, was meant to boost local refining, ease pressure on Nigeria’s foreign exchange reserves, and reduce fuel imports. With that option gone, refiners must now source crude on the open market—driving up costs and putting further strain on fuel prices.

For Dangote, the challenge isn’t just about securing crude—it’s about navigating Nigeria’s unpredictable policy environment. His refinery has the financial strength to find alternative supplies, but smaller refiners may struggle. If costs continue to rise, Nigerians could soon feel the impact at the pump.