Market News

Dare Olawin and Damilola Aina

The Dangote Petroleum Refinery says it has raised daily production to 85 per cent of its 650,000 barrels per day capacity, hoping to hit full capacity in the next 30 days.

Officials of the firm, however, declined to state where the plant intends to source its crude oil, as supply from Nigeria has been limited.

The 85 per cent capacity indicates that the refinery is currently running at 552,500 barrels per day.

The Vice President of Dangote Industries, Devakumar Edwin, told Reuters that plans are underway to hit full capacity in the next 30 days.

Edwin was quoted as saying that the facility was currently operating at 85 per cent capacity, adding that “we can go 100 per cent in 30 days.”

An official of the Dangote Group had earlier told The PUNCH that the refinery is planning to attain its full capacity by the middle of the year – June 2025..

However, Edwin’s comment that the feat could be achieved in March appears to be a testament that the $20bn facility is serious about stopping fuel importation to Nigeria and Africa.

Africa’s largest refinery built by Aliko Dangote in Lagos began processing crude into products, including diesel, naphtha, and jet fuel in January last year.

In September, it started producing petrol even when it faced serious crude challenges that triggered controversies in the petroleum sector.

Despite not getting enough crude locally, the refinery is currently competing with European refiners as it disrupts Europe’s petroleum market.

Last year, the refinery turned to importing crude after it was unable to secure sufficient volumes despite an agreement with the Nigerian government to buy crude in the local naira currency.

The Nigerian Upstream Petroleum Regulatory Commission said the refinery would require up to 550,000bpd of crude from January to June this year from Nigerian oil producers.

The NUPRC has also said it would block export permits for oil cargoes from producers who fail to meet their domestic crude supply obligations to local refineries.

The Dangote refinery is exploring new markets for its refined products.

The refinery’s Chairman, Aliko Dangote, said last week that the company was sending two cargoes of jet fuel to Saudi Aramco as part of its expansion plans.

However, Edwin was quoted as saying, “We are looking at all the markets right now.”

Meanwhile, another senior official at the refinery confirmed that the planned upgrade in production capacity would undoubtedly result in a significant increase in the output of refined products.

“Yes, it is clear that expanding production capacity will lead to a higher volume of products entering the market,” the official, who spoke to our correspondent in confidence due to lack of authorisation to speak on the matter, stated.

The source added, “It is like someone who used to cook only half a pot of rice and now can cook a full pot. Everyone will be well-fed, and that’s exactly what will happen.”

However, it is still uncertain whether this development will lead to a reduction in fuel prices at the loading stage.

Also, questions remain about the refinery’s source of crude oil, as the specifics of its procurement plans were not released by its officials.