The Dangote oil refinery in Nigeria, owned by Africa’s wealthiest individual, Aliko Dangote, began distributing petroleum products to the local market on Tuesday, marking a significant milestone in Nigeria’s pursuit of energy self-sufficiency. Built on the outskirts of Lagos at a cost of $20 billion, the refinery is poised to be the largest in Africa and Europe, with a refining capacity of up to 650,000 barrels per day (bpd). It is expected to reach full capacity either this year or the next.
Group Executive Devakumar Edwin confirmed the commencement of diesel and jet fuel shipments, highlighting the substantial quantities available for distribution both by sea and road. The refinery’s large-scale operations facilitate the loading of ships with millions of liters of fuel, thereby enhancing the logistical process.
The local market has responded positively, with the Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Depots and Petroleum Products Marketers Association of Nigeria (DAPPMA) actively engaging in negotiations to secure petroleum products from the refinery. IPMAN, controlling around 150,000 retail stations nationwide, and DAPPMA, seeking to acquire letters of credit for procurement, are pivotal in integrating Dangote’s output into Nigeria’s fuel supply chain.
The Dangote refinery is seen as a game-changer for Nigeria, potentially ending the country’s dependency on imported petroleum products. Despite being Africa’s largest oil producer and most populous nation, Nigeria has historically imported the majority of its fuel due to insufficient domestic refining capabilities. This new development could significantly alter the energy landscape in Nigeria, promising greater independence and economic stability in the petroleum sector.
