War in Iran has disrupted global energy supplies, sending shockwaves through international markets. The conflict intensified tensions in the Strait of Hormuz, a critical waterway through which about 20 percent of the world's oil passes. Attacks on shipping and threats to close the strait triggered panic buying and price spikes in crude oil. Global refineries faced supply constraints, leading to fuel shortages in several countries. Nigeria, often vulnerable to such shocks, found some relief in the Dangote Refinery. The facility, located in Lekki Free Trade Zone, began full operations in January 2024 and now processes up to 650,000 barrels of crude per day. Its output has helped stabilise domestic fuel supply despite the global turmoil. "We are no longer at the mercy of foreign refineries," said Dangote Group spokesperson Tunde Folawiyo. "This refinery was built for moments like this."
Dangote's refinery is no longer just a private project but a national buffer against global instability. With Iran's war disrupting oil flows through the Strait of Hormuz, Nigeria's reliance on imported refined fuel has visibly weakened. The refinery's 650,000-barrel capacity is now a decisive factor in shielding Nigerians from full exposure to international price shocks. This shifts the power balance in Nigeria's energy sector, reducing the leverage of foreign suppliers and domestic import cartels alike.
