The Dangote refinery, Africa’s largest, has ramped up exports of petrol and urea to African countries affected by supply disruptions caused by the Iran war, its owner, Aliko Dangote, said on Monday.
Operating at its full capacity of 650,000 barrels per day, the refinery has helped cushion the impact of the crisis both in Nigeria and across the continent, Reuters reported.
“What I can do is assure Nigerians … and most of West Africa, Central Africa, and East Africa, we have the capacity to supply them,” Dangote said during a tour of the refinery on the outskirts of Lagos, Nigeria’s commercial hub.
He added that the facility had shipped some 17 cargoes of petrol to other African nations, and urea fertiliser exports had also risen as buyers sought alternative sources of supply.
“In the last couple of days, we’ve been looking to mostly African countries, which we were not doing before,” he said, referring to fertiliser shipments, without providing figures, Reuters added.
The refinery has the capacity to produce up to three million metric tons of urea annually, most of which is typically exported to the United States and South America, officials said.
Despite maximum production at Dangote, fuel prices in Nigeria have reached record highs, reflecting the continued impact of elevated global crude prices.
Dangote said the refinery hopes to secure more crude cargoes priced in local currency to help curb domestic fuel costs.
Two trade sources and a refinery official told Reuters last week that the Nigerian National Petroleum Company Limited (NNPC) had allocated seven May cargoes for Dangote refinery, up from five in previous months.
Meanwhile, oil prices inched higher on Monday amid cautious trading as investors awaited clarity on U.S.-Iran negotiations and feared sustained supply disruptions.
Brent crude rose 0.1 percent to $109.13 per barrel, while WTI crude traded up 0.69 percent at $112.31 per barrel.
The U.S. and Iran received a framework plan to end hostilities, but Iran immediately rejected reopening the Strait of Hormuz, after President Donald Trump warned of “hell” if a deal was not reached by Tuesday.
Iran also said it had formulated its positions and demands in response to ceasefire proposals transmitted via intermediaries.
The strait, a critical transit for oil from Iraq, Saudi Arabia, Qatar, Kuwait, and the UAE, remains largely closed following Iranian attacks on shipping since February 28.
Some vessels including an Omani-operated tanker, a French container ship, and a Japanese gas carrier, have passed through since Thursday, reflecting Iran’s selective passage policy, Reuters reported.
Middle East supply disruptions have prompted refiners to seek alternative crude sources, particularly for U.S. and North Sea cargoes.
Spot premiums for WTI crude have surged amid competition from Asian and European refiners.
On Sunday, OPEC+ agreed to a modest increase of 206,000 barrels per day for May.
Saudi Arabia also set the official selling price of May Arab Light crude to Asia at a record premium of $19.50 per barrel, above the Oman/Dubai average, a $17 increase from the prior month, Aramco announced.
Meanwhile, Iran rejected a 45-day ceasefire proposal, insisting on a permanent end to the war.
Israeli forces struck a major gas field as Trump’s Tuesday ultimatum to reopen the strait loomed.
“We only accept an end of the war with guarantees that we won’t be attacked again,” said Mojtaba Ferdousi Pour, head of Iran’s diplomatic mission in Cairo.
He added that Iran no longer trusted the Trump administration after previous U.S. military actions during talks.
Iran’s state-run IRNA reported that Tehran conveyed its response through Pakistan, a key mediator.
A regional official involved in the negotiations, speaking anonymously, said talks had not collapsed: “We are still talking to both sides.”
Trump escalated threats against Iran during a press conference: “The entire country can be taken out in one night, and that night might be tomorrow night.”
Iranian and Omani officials reportedly were working on a mechanism to manage the strait, which handles a fifth of the world’s oil in peacetime.
Tehran has refused U.S. and Israeli vessels passage since the war began on February 28.
Addressing an Easter event, Trump warned: “If I had my choice, what would I like to do? Take the oil, but unfortunately the American people would like to see us come home.”
When asked if Tuesday 8pm Washington time was a final deadline, he replied, “Yeah.”
