Dangote Refinery Set to Reach Full Capacity in 30 Days, Boosting Nigeria’s Economic Recovery

Nigeria’s Dangote Refinery, the largest in Africa, is set to operate at full capacity within the next 30 days, as confirmed by the refinery’s head, Edwin Devakumar. Currently processing 650,000 barrels per day (bpd), the refinery began production in January 2024, producing diesel, naphtha, and jet fuel, and expanded to petrol production in September 2024. This development marks a major step toward self-sufficiency in oil refining for Nigeria, which has long struggled to meet its domestic refining needs.

Despite its scale, the refinery has faced challenges in securing enough crude oil locally, even though it has agreements in place with the Nigerian government to buy crude in local naira. The refinery has been forced to import crude due to insufficient local supply, hindering its ability to operate at full capacity. However, Devakumar emphasized that they are currently operating at 85% capacity and are confident they will reach 100% in the next month.

To ensure consistent supply, the refinery has requested 550,000 bpd of crude from Nigerian oil producers for the first half of 2025. The Nigerian government, through the oil regulator, has pledged to prevent any exporters from shipping crude abroad if they fail to meet the required supply quotas for local refineries. This effort underscores the importance of boosting domestic refining capacity for Nigeria’s economic recovery.

In addition to meeting local demand, Dangote Refinery is exploring international markets for its refined products. Recently, the refinery sent two cargoes of jet fuel to Saudi Aramco as part of its broader strategy to expand its global reach. This move signals Dangote’s ambition to compete with European refiners and increase Nigeria’s presence in the global oil market.

Source: BUSINESS DAY