Nigeria’s biggest oil refinery, Dangote Refinery, is set to reach full production capacity in the next 30 days, according to its top executive, Edwin Devakumar.
The $20 billion facility, located in the Lekki Free Trade Zone in Lagos, is the largest in Africa and one of the biggest in the world. With a processing capacity of 650,000 barrels per day (bpd), it was built to reduce Nigeria’s reliance on imported petroleum products.
Refinery Nears Full Operation
Dangote Refinery started refining diesel, jet fuel, and naphtha in January last year and began petrol production in September. However, it has faced challenges in securing enough local crude oil, forcing it to import supplies.
Currently operating at 85% capacity, the refinery is on track to reach 100% production within a month, Devakumar said.
To meet its demand, the refinery has requested 550,000 bpd of crude for the first half of 2025. The Nigerian government has also stepped in, warning oil producers that they could lose export permits if they fail to meet their supply obligations to local refineries.
Exploring Global Markets
As it ramps up operations, Dangote Refinery is also looking to export its refined products. Aliko Dangote, the billionaire founder, recently told visiting Nigerian professionals that the refinery had shipped two cargoes of jet fuel to Saudi Aramco.
“We are looking at all the markets right now,” Devakumar added.
Oil Prices Recover
Meanwhile, global oil prices have rebounded after recent declines. Brent crude rose by 87 cents (1.2%) to $75.53 per barrel, while US West Texas Intermediate (WTI) gained 90 cents (1.3%) to reach $71.90.
The price recovery comes despite concerns over a possible global trade war triggered by US President Donald Trump’s tariff policies. Trump has announced a 25% tariff on steel and aluminium imports, a move that could affect global markets.
Analysts at Citi predict that Brent crude will average between $60 and $65 per barrel in the second half of 2025. They believe Trump’s push for lower energy prices will keep the market bearish.
The Road Ahead
With Dangote Refinery nearing full capacity, Nigeria stands to benefit significantly from reduced fuel imports and improved energy security. However, securing a steady supply of local crude remains a key challenge.
As the refinery expands its market reach, its impact on Nigeria’s oil and gas sector will be closely watched in the coming months.