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The Dangote Petroleum Refinery, Africa’s largest, is poised to reach its full operational capacity of 650,000 barrels per day (bpd) within the next 30 days, according to Edwin Devakumar, Head of Refinery in an interview with Reuters.
According to him, the Lagos-based refinery, owned by Nigerian billionaire Aliko Dangote, began refining crude into diesel, naphtha, and jet fuel in January 2024 and commenced petrol production in September of the same year.
“The refinery is currently operating at 85 per cent capacity, and we can achieve 100 percent within 30 days,” Devakumar stated.
Despite its massive capacity, the refinery has faced challenges in securing adequate local crude supply.
Devakumar noted that the refinery had to resort to importing crude oil last year due to insufficient local supply, despite an agreement with the Nigerian government to purchase crude in naira.
The Nigerian National Petroleum Company Limited (NNPCL) has disclosed that the refinery requested 550,000 bpd of crude for the period of January to June 2025 from Nigerian oil producers.
To enforce local supply obligations, NNPCL announced that it would block export permits for oil producers who fail to meet their assigned quota for domestic refineries.
In an effort to expand its market reach, the Dangote Refinery has begun exporting refined products to international buyers.
Aliko Dangote revealed last week that the refinery had shipped two cargoes of jet fuel to Saudi Aramco, marking a significant milestone in its global expansion strategy.
Devakumar added that the refinery is actively exploring all available markets to enhance its presence.
Industry experts anticipate that once the Dangote Refinery reaches full capacity, it will compete with European refiners in supplying refined petroleum products.
However, analysts caution that the refinery’s long-term viability depends on securing a stable local crude supply to avoid reliance on costly imports.
Since commencing operations in 2024, the refinery has steadily ramped up production, reaching 552,500 bpd—equivalent to 85 per cent capacity—according to recent reports.
The inability of NNPCL to meet the refinery’s crude supply needs in 2024 led to crude imports, highlighting the challenges of Nigeria’s domestic supply chain.
In November 2024, Aliko Dangote emphasised the importance of collaboration between local refineries to meet Nigeria’s daily petrol demand, estimated at 32 million litres.
The refinery’s recent exports to Saudi Aramco underscore its ambition to become a key player in the global petroleum market while addressing Nigeria’s domestic fuel supply challenges.
Industry analysts predict that with full capacity utilization, the Dangote Refinery could significantly reduce Nigeria’s dependence on imported refined petroleum products, stabilising fuel prices and enhancing the country’s energy security.
However, they caution that regulatory bottlenecks, crude supply limitations, and pricing policies will remain critical factors influencing the refinery’s long-term success.
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