Lagos, Nigeria – The Dangote Refinery, a $20 billion megaproject in Lagos State, Nigeria, is poised to redefine Africa’s oil and gas landscape. With a processing capacity of 650,000 barrels of crude oil per day, it stands as the world’s largest single-train refinery and one of the most ambitious private-sector investments on the continent.
Since commencing operations in 2024, the refinery has been producing approximately 420,000 barrels per day of refined products, including gasoline, diesel, kerosene, and jet fuel. This output addresses Nigeria’s domestic fuel demand, estimated at 30-35 million liters of gasoline daily, and reduces the country’s reliance on imports, which previously cost an estimated $10 billion annually.
The facility also houses a petrochemical complex and a state-of-the-art fertilizer plant capable of producing 3 million metric tons annually, enhancing Nigeria’s agricultural sector and diversifying its revenue streams.
In November 2024, Dangote Refinery secured a 10-year gas supply agreement with the Nigerian National Petroleum Corporation (NNPC). The deal provides 100 million cubic feet of natural gas daily to power the refinery, ensuring stable operations.
To meet its crude supply needs, Dangote is actively negotiating with international suppliers, including Angola and Libya. These agreements aim to stabilize crude inputs and enable the refinery to reach full capacity by mid-2025.
The refinery is expected to save Nigeria over $5 billion annually in foreign exchange and create more than 100,000 direct and indirect jobs. Neighboring Ghana has already expressed interest in importing refined products from the Dangote Refinery to reduce its monthly fuel import costs of approximately $400 million. Other West African nations are also positioning themselves as future beneficiaries of the refinery’s production.
Despite its potential, the project faces challenges, including fluctuating crude supply and exchange rate volatility. Dangote Industries is exploring partnerships with global financial institutions and oil traders to overcome these hurdles and fund ongoing operations.
By 2025, when the refinery is expected to reach full capacity, Nigeria could emerge as a major exporter of refined petroleum products, establishing itself as a key player in the global energy market.
Aliko Dangote’s vision, backed by bold investments and strategic partnerships, has transformed the Dangote Refinery into a beacon of economic and industrial progress for Africa. As the refinery ramps up operations, it promises to not only achieve energy self-sufficiency for Nigeria but also position the country as a powerhouse in the oil and gas sector, driving economic growth and regional development across West Africa.
