The Dangote Petroleum Refinery has ramped up its daily production to 85 per cent of its 650,000 barrels per day (bpd) capacity, with expectations to reach full capacity in the next 30 days.
Despite this progress, officials did not disclose details on crude oil sourcing, as local supply remains limited. Operating at 85 per cent capacity translates to 552,500 bpd, a significant milestone in the refinery’s operations.
According to Vice President of Dangote Industries, Devakumar Edwin, the facility is currently running at 85 per cent, stating, “we can go 100 per cent in 30 days.” This contrasts with an earlier projection that full capacity would be achieved by June 2025, reinforcing the refinery’s commitment to reducing fuel imports in Nigeria and across Africa.
Since commencing crude processing in January 2024, the $20 billion Lagos-based refinery has produced diesel, naphtha, jet fuel, and petrol, despite facing challenges in crude sourcing. The refinery has had to import crude after struggling to secure sufficient domestic supply, even with a prior agreement to purchase crude in naira.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has stated that the refinery requires up to 550,000 bpd of crude from January to June 2025. To ensure local refineries receive sufficient supply, the NUPRC has warned oil producers that export permits could be blocked if they fail to meet domestic supply obligations.
As the refinery expands, it is exploring new markets for its refined products. Aliko Dangote, the refinery’s chairman, recently announced that two cargoes of jet fuel were sent to Saudi Aramco, marking the facility’s growing international reach. Edwin also confirmed that the company is evaluating multiple market opportunities, stating, “We are looking at all the markets right now.”
A senior refinery official, speaking anonymously, confirmed that the production boost would lead to a higher volume of refined products, likening it to cooking a full pot of rice instead of half, ensuring more supply to the market.
However, uncertainties remain about whether the increased production will lead to lower fuel prices. Additionally, questions persist regarding the refinery’s long-term crude sourcing strategy, as officials have not provided specifics on procurement plans.
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