Nigeria’s Dangote Oil Refinery, the largest in Africa, could reach full capacity within 30 days, according to its chief executive on Monday.
The 650,000-barrel-per-day refinery, built by Africa’s richest man, Aliko Dangote, began producing diesel, naphtha, and jet fuel in January last year, followed by petrol production in September.
Edwin Devakumar, head of the Dangote oil refinery said it was currently operating at 85% capacity and “we can go 100 per cent in 30 days.”
Once fully operational, the refinery aims to compete with European suppliers, though it has faced challenges in securing enough crude locally, Reuters reported.
According to the Organisation of the Petroleum Exporting Countries (OPEC), Dangote’s oil push in Nigeria is already starting to disrupt the European oil market. Economists suggest that the Dangote refinery could potentially end the long-standing gasoline trade from Europe to Africa, which is valued at $17 billion annually.
However, challenges remain. Last year, the refinery had to import crude due to local supply shortages, despite an agreement with the Nigerian government to purchase crude in naira.
For the first half of this year (January–June), it has requested 550,000 barrels per day from Nigerian oil producers, according to the country’s oil regulator. The regulator has also warned that it will block export permits for oil producers who fail to meet their required supply quotas to local refineries.
Dangote refinery expands global reach
The Dangote Oil Refinery is expanding its reach by exploring new markets for its refined products. Dangote recently revealed last week that the refinery had dispatched two cargoes of jet fuel to Saudi Aramco, marking a step toward global expansion.
“We are already reaching the ambitious goals we set for ourselves, and we are pleased to announce that we have just sold two cargoes of jet fuel to Saudi Aramco,” Dangote stated.
S&P Global Commodity Insights reports that the Dangote Refinery, which produces Nigerian-made aviation fuel, is expanding its global influence, with its product now recommended for use in major hubs such as Heathrow Airport in the UK.
As the sole supplier of jet fuel to Nigerian airlines, Dangote’s aviation fuel now accounts for at least two-thirds of Nigeria’s supply and nearly half of West Africa’s consumption.
Consequently, Nigeria’s jet fuel imports have significantly decreased from 13,000 b/d in 2023 to 5,000 b/d in 2024.
