Dangote Refinery Upgrades Capacity to 700,000 Barrels per Day

The Dangote Petroleum Refinery, situated in the Lekki Free Trade Zone of Lagos State, is embarking on a major expansion project aimed at increasing its refining capacity from the current 650,000 barrels per day (bpd) to an upgraded 700,000 bpd. This strategic move underscores the company’s commitment to enhancing Nigeria’s domestic refining capabilities and reducing the country’s longstanding dependence on imported petroleum products.

The announcement was made during a recent media engagement by top executives of the Dangote Group. According to the refinery’s leadership, the increase in capacity is driven by both growing national demand and the refinery’s ambition to position itself as a major supplier of refined products across West and Central Africa. The additional 50,000 bpd, they noted, will enable the refinery to not only meet local fuel demand but also export surplus production to regional markets.

Construction and retrofitting works are already in progress to support the new capacity target. The refinery is adding more processing units, expanding its storage facilities, and enhancing its logistics and distribution systems. The upgrade includes improvements to the Residue Fluid Catalytic Cracking (RFCC) unit, as well as installations to handle higher volumes of crude intake and refined output. Technical experts from across the globe are reportedly working with local engineers to ensure the upgrade is completed within a reasonable timeframe.

Speaking on the development, the President of Dangote Group, Aliko Dangote, described the upgrade as a transformative step for Nigeria’s oil and gas industry. He emphasized that the refinery is not only a symbol of industrial achievement but also a practical solution to the country’s fuel supply crisis. According to Dangote, “Our refinery will help stabilize Nigeria’s fuel market, reduce pressure on the naira by cutting importation bills, and ensure we meet environmental standards with cleaner fuels.”

Since operations began in early 2024, the Dangote Refinery has been producing diesel, aviation fuel, and naphtha, with gasoline production also commencing later in the year. Despite operating at roughly 85 percent of its initial capacity, the refinery has made significant inroads into the Nigerian fuel market, supplying product to both public and private entities.

The refinery has also been importing crude from multiple sources, including the United States, to ensure steady feedstock availability. However, efforts are ongoing to increase domestic crude supply from Nigeria’s own oil fields. Dangote Group has been engaging with the Nigerian National Petroleum Company Limited (NNPC) and other upstream producers to secure long-term supply contracts that will support full-capacity operations.

Experts believe the upgrade to 700,000 bpd will provide Nigeria with unprecedented self-sufficiency in fuel production. The country, which has for decades relied heavily on imported petroleum products despite being a major crude oil producer, stands to save billions of dollars annually in foreign exchange. In addition, the refinery is expected to contribute to job creation, skills development, and local content growth, all of which align with the Federal Government’s economic diversification agenda.

There are also plans to expand the refinery’s export capabilities. Additional storage tanks and jetty facilities are being constructed to accommodate larger shipping volumes. The refinery is eyeing export markets in West Africa, Southern Africa, and potentially Europe. The construction of export storage terminals in strategic coastal regions is part of this long-term vision.

However, challenges remain. Analysts point out that for the refinery to sustain its upgraded operations, the issue of crude supply reliability must be addressed. With oil theft, pipeline vandalism, and production fluctuations still plaguing the upstream sector, consistent supply could pose a risk. Nonetheless, Dangote Group is optimistic that collaboration with the government and key stakeholders will help overcome these hurdles.

Market analysts have responded positively to the upgrade news, noting that it could lead to lower fuel prices over time due to increased local supply. The refinery’s scale also provides leverage for Nigeria to negotiate better trade terms and foster regional energy integration.

In summary, the Dangote Refinery’s move to upscale its capacity to 700,000 bpd is being hailed as a bold step toward achieving energy independence for Nigeria. If successfully implemented, the upgrade could reshape the country’s energy landscape, reduce reliance on imports, strengthen the naira, and support broader industrialization goals. As the refinery continues to expand its operations, both local and international observers are watching closely to see how it will impact fuel pricing, economic growth, and Nigeria’s standing in the global oil industry.