Located in the Lekki Free Trade Zone, Lagos, the refinery has begun loading more than 45 million litres of petrol and 25 million litres of diesel daily — volumes that experts say are nearing or exceeding the nation’s current demand. The move follows the federal government’s introduction of a 15 percent import duty on refined petroleum products, aimed at encouraging domestic production and protecting local refinery investments.
According to a statement from the Dangote Group, the company’s goal is to make Nigeria self-sufficient in refined petroleum products and transform the country into a major exporter within the African continent. The new import duty has, however, generated mixed reactions across the energy sector. Supporters argue that it is a crucial step toward strengthening local capacity, conserving foreign exchange, and creating jobs. Others warn that the policy could unintentionally create a monopoly in the refining market if smaller importers are forced out too quickly, potentially affecting competition and pricing.
Commissioned in 2024 after nearly a decade of development and an estimated $20 billion investment, the Dangote Refinery has a production capacity of 650,000 barrels per day. Its output expansion could soon turn Nigeria from a net importer into a regional refining hub, supplying petrol, diesel, aviation fuel, and other products to neighboring countries. Energy analysts believe that consistent performance from the plant could save Nigeria billions of dollars annually and stabilize the country’s volatile fuel market.
Despite growing optimism, experts have highlighted several challenges that could affect the refinery’s long-term performance. Continuous crude oil supply, efficient distribution systems, maintenance schedules, and reliable power remain critical to sustaining production. Operational logistics and market competition are also areas of concern for regulators and industry stakeholders.
With production now accelerating and government policy clearly favoring local refining, Nigeria appears to be taking decisive steps toward achieving energy independence. The coming months will determine whether the Dangote refinery can maintain momentum and fully deliver on its promise to reshape the country’s oil and gas landscape.
