The Dangote Refinery, located on the outskirts of Lagos and built by Africa’s richest man, Aliko Dangote, is the largest in Africa.
With a capacity of 650,000 barrels per day (bpd), it aims to reduce Nigeria’s reliance on imported fuels due to the country’s limited refining capacity.
Since beginning operations in January, the refinery has struggled to secure enough crude oil despite Nigeria being Africa’s largest oil producer. The country faces issues of theft, pipeline vandalism, and low investment.
To address these challenges, the Dangote refinery has entered negotiations with Libya to import crude oil. Refinery executive Devakumar Edwin confirmed that discussions are also planned with Angola and other African countries.
Currently, crude oil is imported from Brazil and the USA, but Dangote is looking to diversify its sources to ensure long-term supply stability.
The refinery has established partnerships with international traders and major oil companies such as Trafigura, Vitol, BP, and TotalEnergies for the export of its diesel oil.
Edwin revealed that these traders mainly transport diesel to offshore markets, enabling Dangote to capture market share from European refiners in West Africa.
Additionally, Dangote has set up an oil trading arm, with offices in London and Lagos, to manage the supply and sale of refined products.
A notable challenge for the refinery is the regulation of the sulfur content of its diesel fuel. Nigeria’s upstream regulator criticized the refinery for sulfur levels above the required limit of 200 parts per million (ppm).
Aliko Dangote responded that the sulfur level was initially higher but has now dropped to 88 ppm and should reach 10 ppm by early August as production increases.
This upgrade will help the refinery meet international standards and boost its global market position. By negotiating with Libya and other suppliers and working to lower sulfur content, the Dangote refinery demonstrates proactive steps to enhance its viability and competitiveness.
These efforts highlight the refinery’s dedication to addressing local challenges and solidifying its role as a major player in both the African and global oil industries.
