Nigerian billionaire Aliko Dangote, alongside the governments of Ethiopia and Djibouti, has agreed to develop a $660 million petroleum pipeline and storage facility linking the two countries. The 120-kilometre pipeline will connect Djibouti's Damerjog port to a distribution facility in Ethiopia, with storage capacity for approximately 400 million litres. The project addresses a critical need for landlocked Ethiopia, which currently relies heavily on Djibouti's port for fuel imports and other goods, and is expected to begin operations within 18 months.

The pipeline will reduce the time required to transport fuel from Djibouti's port to Addis Ababa from five days to just one day, substantially strengthening Ethiopia's energy security and streamlining its fuel supply chain. The first phase will transport jet fuel, diesel and petrol, relieving pressure on existing transport infrastructure and benefiting multiple sectors including aviation, agriculture and construction. Djibouti is expected to gain from increased port activity, job creation and higher government revenues. The project forms part of Dangote's wider expansion across Africa, which includes cement production of 55 million tonnes annually and an oil refinery in Nigeria processing 700,000 barrels of crude per day, with plans to double that capacity.