Dangote breaks ground on $2.5 billion fuel storage hub in Namibia
The Walvis Bay terminal would hold about 600 million litres of diesel and petrol from the Lagos refinery, with room for a pipeline into southern Africa's landlocked countries. Dangote says it will be ready in 18 to 20 months.
In 30 seconds
- Aliko Dangote launched a $2.5 billion fuel storage and pipeline project at Walvis Bay, Namibia, on Wednesday 4 November.
- The tank farm would hold about 600 million litres, some 4 million barrels: 360 million litres of diesel and the rest petrol.
- That is eight times Namibia's national oil storage facility. Dangote said it would be finished in 18 to 20 months.
- The plan has room for a 1,700 km pipeline to neighbouring countries. Reports differ on which ones.
The Dangote Group has started work on a $2.5 billion fuel storage and pipeline project in Namibia, a big step into southern Africa's fuel market.
Aliko Dangote launched the project at Walvis Bay, Namibia's main port, on Wednesday 4 November. President Netumbo Nandi-Ndaitwah attended, Reuters reported.
What will be built
The tank farm would store about 600 million litres of fuel, or some 4 million barrels. Of that, 360 million litres would be diesel and the rest, about 240 million litres, petrol.
That is eight times the size of Namibia's National Oil Storage Facility, which holds 75 million litres and is run by the state oil company Namcor, according to Reuters.
Dangote told reporters it would be finished in 18 to 20 months.
The fuel would come from the Dangote refinery in Lagos, which Reuters puts at 700,000 barrels a day. BusinessDay reported that Dangote plans to expand the Lagos plant to 1.4 million barrels a day within three years.
A pipeline into the interior
The terminal has room for a 1,700 km pipeline into the countries around Namibia. The two reports we read differ on the route. Reuters said it would connect Botswana, Zimbabwe, Zambia and possibly the Democratic Republic of Congo. BusinessDay said it would link Namibia to Botswana and South Africa. No route has been published, so treat both as early plans.
Dangote said the hub would ease supply problems for Namibia. "For Namibia it is expected to moderate logistical vulnerabilities," he said, according to Reuters. BusinessDay quoted him telling the audience their fuel prices would be "much cheaper than where they are".
Gerrit van Rooyen, an economist at Oxford Economics Africa, told Reuters the project "will help the company to diversify its market".
How we got here
The plan is not new. The Namibian reported earlier that Dangote Industries Namibia had applied for environmental clearance to subdivide about 70 hectares of industrial land at Walvis Bay, and that construction needs a separate environmental impact assessment. That earlier plan spoke of 1.6 million barrels. The project launched this week is more than twice that size.
What it means for you
For Nigerians, this is about where Dangote petrol and diesel go. A big storage hub in southern Africa gives the refinery a steady export market, which helps it keep running at full capacity.
Some readers will ask whether exports mean less fuel at home. Neither report addressed that. How the refinery balances home and export sales is worth watching as this hub fills up, and we will follow it.
Words to know
- Tank farm
- A group of large storage tanks at a port or depot where fuel is held before it is sold on.
- Landlocked country
- A country with no coastline, which must bring in fuel by road, rail or pipeline through its neighbours.
- SADC
- The Southern African Development Community, a regional bloc of 16 countries including Namibia, Botswana, Zambia and Zimbabwe.
Sources
- Reuters via Sunday World: Dangote launches $2.5bn Namibian fuel storage project (4 Nov 2026)
- BusinessDay: Dangote expands footprint in landlocked regions with $2.5bn Namibia project (4 Nov 2026)
- The Namibian: Dangote begins regulatory process for Namibia fuel storage terminal (background, 2026)
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