Africa’s petroleum trade could face a major shift as Nigerian industrialist Aliko Dangote moves to build an interconnected fuel distribution network across several regions of the continent, combining pipeline investments, storage facilities and new supply routes to expand the reach of his refinery.
The expansion is designed to connect refining capacity in Nigeria with markets in East, Central and Southern Africa, many of which depend on imported petroleum products and face challenges moving fuel efficiently from ports to consumers.
Dangote disclosed the plan during a discussion with Financial Times Africa Editor David Pilling at the FT Africa Summit in London, where he outlined his group’s growing investment in energy infrastructure and called on African governments to strengthen policies supporting domestic industries.
A major development in the strategy is the acquisition of a 25 per cent stake in Kenya’s petroleum pipeline network. The investment is expected to strengthen the movement of refined products across East Africa and provide Dangote’s group with a stronger position in the region’s energy distribution system.
The industrialist also disclosed plans for a petroleum distribution corridor linking Djibouti with Addis Ababa, Ethiopia’s capital. The project is expected to include storage terminals and tank farms to facilitate the movement of fuel into markets that rely heavily on imported supplies.
In Central Africa, a petroleum infrastructure project in Cameroon is nearing completion, while Namibia has been identified as a strategic entry point for the southern African market.
Dangote said petroleum products from his refinery in Lagos could be shipped to Namibia in approximately four days, from where supplies could be distributed to neighbouring countries, including Botswana and South Africa. The group is also considering distribution routes extending into Zimbabwe and Zambia.
The expansion forms part of a broader ambition to build a continental supply network that reduces logistical bottlenecks and improves access to refined petroleum products. By combining refining, transportation and storage infrastructure, the group hopes to establish more direct supply channels between production centres and regional markets.
Dangote’s plans also include a proposed refinery in Lamu, Kenya, with a projected capacity of 700,000 barrels per day. The facility is intended to serve the growing energy needs of East Africa, where industrial activity, mining operations and population growth are driving demand for petroleum products.
He said the proposed refinery would source crude oil from multiple markets rather than rely exclusively on Kenya or Uganda. The choice of Lamu was informed by its deep-water access, marine infrastructure and suitability for large-scale industrial operations.
Beyond expanding its energy business, Dangote used the summit to argue that African governments must do more to protect domestic manufacturing from unfair foreign competition.
He maintained that countries seeking industrial growth should develop policies that encourage local production, preserve jobs and reduce excessive dependence on imported goods. In his view, allowing imported products to displace locally manufactured goods weakens domestic industries and limits employment opportunities.
Dangote questioned why African countries should hesitate to support their industries when major economies, including the United States, have adopted policies designed to protect domestic manufacturing.
He argued that industrial development requires more than private investment, stressing that governments must provide an enabling environment through infrastructure, stable policies and measures that support local producers.
The industrialist also disclosed that his group had earmarked approximately $50 billion for investments between 2026 and 2030. The programme is intended to expand its industrial operations and demonstrate the capacity of African businesses to execute major projects across multiple sectors.
He identified inadequate electricity supply, weak financial systems and insufficient industrial infrastructure as some of the principal obstacles to Africa’s economic transformation. Reliable power, he argued, is essential for manufacturing, mining and processing industries that could add value to the continent’s natural resources before export.
The proposed distribution network represents a significant expansion of Dangote’s ambitions beyond Nigeria, positioning the group to compete more actively in regional petroleum markets while investing in infrastructure that connects several African economies.
However, the long-term impact will depend on the execution of the proposed projects, regulatory cooperation among participating countries, financing arrangements and the ability of the network to deliver petroleum products competitively.
For African economies seeking greater energy security and stronger industrial capacity, the initiative raises important questions about regional integration, domestic production and the role large African companies can play in reducing reliance on external supply chains.