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- The Dangote Refinery is responsible for 60% petrol supply in Nigeria, contrary to NMDPRA’s claims of less than 50%
- Also, experts have credited the Dangote Refinery for causing a decline in petrol imports in Nigeria, saving the scarce FX
- Analysts say the Port Harcourt and Warri Refineries contribute next to nothing to petrol supply in Nigeria
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
A few months ago, all of Nigeria’s petrol consumption was imported. However, that all changed with the launch of the mega Dangote Refinery in Lekki, Lagos.
A recent report by S&P Global shows that about 60% of Nigeria’s petrol supply comes from the Dangote Refinery as the plant prepares to reach full refining capacity in a few days.
Source: UGC
Dangote refinery to reach full capacity
An official of the Dangote Refinery disclosed that the facility was producing about 37 million litres of petrol daily and was at over 85% production capacity.
The 200,000 barrels of crude per day would meet the majority of Nigeria’s estimated 350,000 barrels per day of petrol demand, the report by S&P Global said.
Legit.ng earlier reported that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) revealed that Nigeria’s refineries, including the 650,000 bpd-capacity refinery, contribute less than 50% of Nigeria’s daily consumption.
The NMDPRA revealed that the rest of the shortfall comes from imports by oil marketers.
The regulator also disclosed that Nigeria’s petrol consumption dropped from 66 million to 50 million litres daily.
Dangote Refinery reveals N600bn petrol reserves
However, the Dangote Refinery refuted the NMDPRA claims, saying that it holds about 500 million litres of petrol, estimated at N600 billion, in its reserve, enough to meet the consumption demands of Nigerians.
Also, the Crude Oil Refiners Association of Nigeria (CORAN) asked the Nigerian government to stop issuing import licenses as the Dangote Refinery can meet the domestic market needs.
Experts have said the giant Lekki-based refinery is responsible for the decline in petrol imports, which gulped billions of dollars from Nigeria’s FX reserves.
They say the imports also strained the foreign exchange market, putting unnecessary pressure on the local currency.
Dangote Refinery: Nigerians doubt NNPC facilities are working
The newly revamped Port Harcourt and Warri refineries contribute next to nothing to local petrol balances as of February, with stakeholders doubting if the facilities are functional as claimed by the Nigerian National Petroleum Company Limited (NNPC).
Source: UGC
NNPC disclosed earlier this month that the Warri Refinery is undergoing maintenance.
“Right now, we don’t know what to believe regarding Port Harcourt and Warri refineries,” energy analyst, Adeola Yusuf told Legit.ng.He said there have not been further reports or evidence showing that marketers are loading petroleum products from the facilities.
“I don’t want to rush to conclusions, but Nigerians are sceptical about the two refineries working. The onus is on the NNPC to prove the naysayers wrong,” he said.Dangote Refinery sells fuel to Saudi Aramco
Legit.ng previously reported that the mega Dangote Refinery has exported two consignments of jet fuel to Saudi Aramco, the world’s biggest energy company valued at $1.92 trillion.
The move establishes Dangote Refinery as a global leader in the energy business.
President of Dangote Industries Limited, Aliko Dangote, disclosed this to the directors of the Nigerian Economic Group (NESG) during the facility’s tour on Tuesday, February 4, 2025, saying the refinery is making giant strides.
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Source: Legit.ng
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