Dangote Refinery starts product delivery to Nigerian marketers

Good news: Nigeria’s new refinery, built by Africa’s richest man Aliko Dangote, has begun supplying domestically produced diesel and aviation fuel.

The company will begin delivering petrol in May.

This marks a significant turning point for Nigeria, Africa’s largest oil producer, which has historically relied heavily on imported refined fuels.

Why this matters

• The Dangote refinery, with a capacity of 650,000 barrels per day, is expected to significantly decrease Nigeria’s need to import gasoline, saving valuable foreign exchange.
• Domestic production could lead to a slight reduction in the price of petrol and other fuel products for Nigerian consumers.
• The refinery is expected to create jobs and stimulate economic activity in the region.

What’s next?

• Gasoline production starts in May: While diesel and aviation fuel are already flowing, gasoline production is expected to begin in May.
• Price and volume details still being finalized: Fuel marketers are currently negotiating volumes and pricing with the Dangote refinery.

Learn more

• The refinery began operations in January but was initially exporting its products.
• It is currently operating at a reduced capacity of 350,000 barrels per day, with plans to ramp up to full capacity in the future.

“We are still finalizing the details of the volumes that we are going to take from Dangote as an association and we also haven’t finalized on the price,” said Abubakar Maigandi, national president of the Independent Petroleum Marketers Association of Nigeria.