At the start of the war in Iran on February 28th, many African countries were certainly far from imagining that this conflict would affect them. After all, most of them are very far from the theater of fighting. Today, these nations of the continent are realizing, to their detriment, that this conflict is impacting them.

Proof of this lies in the dramatic surge in Brent crude prices following the closure of the Strait of Hormuz and the soaring premiums for war insurance. African countries, most of which are net importers of refined fuels, are bearing the brunt of the impact.

Dangote's factory alone can fully meet Nigeria's oil needs

One might be tempted to believe that some of these nations, like Nigeria, are doing exceptionally well because they have oil refineries. After all, Dangote's plant alone can completely meet the country's oil needs.

From the very beginning of the crisis in Iran, the billionaire announced that he was giving priority to the domestic market.

This decision probably allowed the country to avoid being hit hard by the shocks of this oil shock, but the price of black gold in Abuja and Lagos did not necessarily fall.

Dangote's refinery depends on local oil exporters

On the contrary, since the beginning of the conflict in the Middle East, this price has been rising. This is perfectly justified, since Dangote's refinery depends on local oil exporters who sell it their crude at the Brent price, which is the price on international markets.

Therefore, with the current oil crisis, the Dangote refinery is buying local crude at a higher price. This impacts the price of refined petroleum and, consequently, the price at the pump.

It should be noted, however, that fuel would be more expensive in Nigeria during this period of oil crisis if it were not for the Dangote refinery, because the country would have been forced to import a large share of refined oil.