Dangote Petroleum Refinery has ramped up its daily production to 85% of its 650,000 barrels per day (bpd) capacity, with plans to hit full capacity within the next 30 days, 9am news reports.
This means the refinery is currently running at 552,500 bpd, marking a significant milestone for Africa’s largest refinery. However, questions remain regarding its crude oil supply, as local sources have been insufficient.
Vice President of Dangote Industries, Devakumar Edwin, confirmed to Reuters that the facility is on track to achieve 100% production capacity soon. “We can go 100% in 30 days,” Edwin stated.
Earlier reports suggested that full capacity would be reached by June 2025, but the new timeline indicates an accelerated plan to eliminate Nigeria’s dependence on fuel imports.
Challenges in Crude Supply
Despite its growing production, the refinery has faced challenges in securing crude oil locally. Last year, it turned to crude imports after struggling to obtain adequate volumes from Nigerian suppliers, despite an agreement to purchase crude in naira.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has since mandated oil producers to meet domestic supply obligations before exporting crude. The commission warned that export permits could be blocked for non-compliant producers.
The refinery’s growing output is already disrupting the European petroleum market. In addition to supplying Nigeria, it is expanding to international markets. Last week, Chairman Aliko Dangote announced that two cargoes of jet fuel were sent to Saudi Aramco.
A senior official at the refinery noted that the increase in production capacity would bring more refined products to the market. However, it remains uncertain if this will lead to lower fuel prices at loading points.
As Dangote Refinery pushes towards full capacity, its ability to secure a steady crude oil supply will determine its long-term impact on Nigeria’s fuel industry and broader energy markets.
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