Nigeria’s Dangote Refinery: Domestic Fuel Powerhouse

By Ibrahim Abdulsalam (U19MM1123)

February–March 2025, Lagos – The Dangote Petroleum Refinery, the world’s largest single‑train refinery, is rapidly transforming Nigeria’s fuel dynamics. Built at a cost of over $19 billion near Lekki, Lagos, it has a processing capacity of 650,000 barrels per day—expected to rise to 700,000 bpd by Q4 2025:contentReference[oaicite:1]{index=1}.

Since beginning operations in January 2024, it has ramped up to around 85% capacity. Within just days, it reached output levels sufficient for ~60% of Nigeria’s gasoline demand—now producing over 30 million litres per day:contentReference[oaicite:2]{index=2}. Officials anticipate full capacity in 30 days, pending stable crude supply:contentReference[oaicite:3]{index=3}.

“The Dangote refinery’s full operation should stabilize fuel supply and potentially lower petrol prices.” – OPEC Monthly Oil Market Report :contentReference[oaicite:4]{index=4}

According to NESG, the refinery can meet 100% of Nigeria’s demand for all refined products—paving the way for export opportunities and $21 billion crude value market domestically:contentReference[oaicite:5]{index=5}.

Strategic moves include exporting jet fuel cargos to Saudi Aramco and entering global petrochemical markets with polypropylene production—partnerships include a major deal with Vinmar Group targeting export markets :contentReference[oaicite:6]{index=6}.

Though not without challenges—such as inconsistent crude feedstock, legal disputes over import licensing, and distribution bottlenecks—the refinery is already reshaping Nigeria’s fuel economy and foreign exchange outlook.

Sources: Reuters | Reuters | Energy in Africa