The Dangote Petroleum Refinery is transforming Nigeria’s energy landscape by significantly reducing the nation’s reliance on imported refined petroleum products from Europe, according to the Organisation of the Petroleum Exporting Countries (OPEC).
In its Monthly Oil Market Report released on January 15, 2025, OPEC emphasized the Lagos-based refinery’s influence on global gasoline supply chains. The refinery’s increasing production and exports are driving adjustments in international fuel flows.
“The ongoing operational ramp-up at Nigeria’s new Dangote refinery and its gasoline exports to the international market will likely weigh further on the European gasoline market. Continued gasoline production in Nigeria will free up volumes in international markets, necessitating new destinations and flow adjustments,” the report noted.
Despite being Africa’s largest oil producer, Nigeria has long struggled with energy challenges due to the near-total failure of its state-owned refineries. This reliance on imports worsened after the removal of fuel subsidies in May 2023, which caused pump prices to skyrocket from ₦200 per litre to around ₦1,000 per litre, deepening economic hardships for citizens.
The privately funded $20 billion Dangote Refinery, owned by billionaire Aliko Dangote, began operations in December 2023 with an initial capacity of 350,000 barrels per day (bpd). It is expected to reach its full capacity of 650,000 bpd by the end of 2025. Already, the refinery is supplying diesel, petrol, and aviation fuel to marketers nationwide.
This development is a critical turning point for Nigeria’s energy sector, promising to reduce fuel shortages, lower import bills, and stabilize domestic supply while influencing global market dynamics.
