WSJ: Dangote emerges biggest winner from Iran war

Africa’s richest man, Aliko Dangote, has emerged as one of the biggest corporate beneficiaries of the Iran conflict, according to a report by New York-based financial publication, The Wall Street Journal, which says the Nigerian billionaire’s multibillion-dollar refinery is profiting from shifts in global energy markets.

The newspaper reported that Dangote’s $20 billion refinery, which reached full operating capacity earlier this year, has seen demand for its gasoline, diesel and jet fuel surge as buyers seek supplies that are not dependent on shipping through the Strait of Hormuz.

Citing the Bloomberg Billionaires Index, The Wall Street Journal said Dangote’s net worth has increased by about $4.86 billion since the beginning of the year to roughly $34.8 billion, making him one of the world’s wealthiest individuals.

The report noted that the refinery, after years of delays and cost overruns, has become one of the largest exporters of refined petroleum products from Africa. It said output of gasoline, diesel and aviation fuel has risen sharply this year, with exports expanding across sub-Saharan Africa and into Europe.

Economists quoted by the newspaper described Dangote as a major beneficiary of the geopolitical disruption in the Middle East. David Omojomolo of Capital Economics told The Wall Street Journal that the refinery’s timing could hardly have been better, saying its completion coincided with increased demand for alternative fuel supplies.

The giant refinery will be listed on the Nigerian Exchange later this year at a valuation of at least $50 billion before pursuing a possible secondary listing in New York. The company also intends to invest billions of dollars to double refining capacity by 2028 and develop another refinery project in Kenya.

Despite the strong outlook, The Wall Street Journal said the refinery still faces challenges, including securing sufficient crude oil from domestic producers and expanding its distribution network across Africa. The company is reportedly considering investments in shipping, storage and cross-border pipeline infrastructure to support future growth.

The newspaper said Dangote’s refinery has become a key example of how businesses outside the Middle East are benefiting from disruptions to global energy markets, with Nigeria also gaining from stronger demand for its crude oil and refined petroleum exports.