In May, Nigeria is poised to witness a significant shift in its petroleum dynamics as the country’s new mega-refinery, constructed outside Lagos by Africa’s wealthiest individual, Aliko Dangote, prepares to commence domestic gasoline deliveries.
This development marks a pivotal moment for the nation, aimed at reducing its reliance on costly petroleum imports.
According to Devakumar Edwin, Executive Director of Dangote Industries, the facility has already dispatched its inaugural petroleum products—diesel and aviation fuel—on Tuesday. However, specific volume details were not disclosed.
This milestone signifies a turning point for Africa’s largest oil producer, which has traditionally depended heavily on importing refined petroleum products.
With a refining capacity of 650,000 barrels per day, the refinery is expected to alleviate Nigeria’s foreign exchange pressure for fuel imports and marginally mitigate the price volatility of petroleum products.
Once operational at full capacity, the refinery will churn out 99 million liters (26.2 million gallons) of gasoline, diesel, jet fuel, and kerosene daily, as confirmed by Edwin.
Dangote intends to export approximately 50% of its output, given that Nigeria’s domestic consumption of these products stands at around 53 million liters per day.
Abubakar Maigandi, representing an industry body, revealed that marketers have already begun transporting diesel from the refinery, with transactions conducted in naira. However, details regarding the exact volumes and pricing arrangements are still being finalized.
In the previous month, the refinery, which commenced operations in January, initiated its first exports, including 65,000 metric tonnes of low-sulphur straight-run fuel oil and around 60,000 tonnes of naphtha.
Presently operating at an initial processing rate of 350,000 barrels per day, the refinery aims to ramp up production to achieve its maximum capacity.
