Refinery Produces Enough Fuel for Local Use and Export
The Dangote Petroleum Refinery has confirmed it holds over 500 million litres of petrol in reserve, ensuring a steady supply to meet Nigeria’s fuel needs. Alhaji Aliko Dangote, President of the Dangote Group, made this known during a tour of the $20 billion Lekki-based facility with Zambia’s Minister for Energy, Makozo Chikote, on Saturday.
According to Dangote, the refinery has ₦600 billion worth of fuel stocks ready to serve both local and international markets. “We currently produce enough refined products—petrol, diesel, and kerosene—to satisfy Nigeria’s full demand while still exporting to other countries,” he said. He added that Nigeria consumes less than 50% of the refinery’s output, with the remaining 60% set for export.
Production Capacity and Quality Standards
The refinery operates at 550,000 barrels per day (bpd), aiming to hit its full capacity of 650,000 bpd next month. With 177 storage tanks holding over 4.7 billion litres of various fuels, the facility can supply Nigeria uninterrupted for several weeks. Current production figures show:
- 57 million litres of petrol daily
- 20 million litres of jet fuel
- 37 million litres of diesel
Local consumption accounts for 46 million litres per day, while 58 million litres are exported. Dangote emphasized the superior quality of their products, noting fuel with zero parts per million (ppm) sulphur and 95 octane ratings—surpassing standards of many European refineries.
“Many refineries across Europe are shutting down because they can’t match our quality. We produce winter diesel and Euro-5 fuels with remarkable efficiency,” Dangote noted.
Zambia Seeks Energy Collaboration
During the visit, Minister Chikote expressed Zambia’s interest in partnering with the refinery to address its energy security challenges. “Zambia relies heavily on fuel imports through Tanzania’s Dar es Salaam facility, leading to delays and congestion,” Chikote stated. He emphasized the importance of competitive fuel pricing and the need for reliable petroleum products to support Zambia’s economic growth, particularly in mining and agriculture.
“We believe collaboration with Dangote will improve Zambia’s fuel supply chain, ensuring timely delivery and affordability for our citizens,” Chikote added.
Efforts are underway with Afreximbank to resolve challenges related to letters of credit and financing, ensuring seamless export operations. The refinery’s strategic coastal location enables efficient distribution across Africa, with a vision to make it a truly African refinery, not just an export hub for raw materials.
Dangote reiterated:
- 40% of production serves Nigeria
- 60% is allocated for African markets
- Focus remains on intra-African trade to reduce dependence on non-African suppliers
Why This Matters:
- Nigeria’s fuel scarcity concerns alleviated
- Improved fuel quality surpassing European standards
- Boost to Africa’s energy independence
- Zambia seeks improved energy security through Dangote partnership
This significant development not only strengthens Nigeria’s energy sector but also positions the Dangote Refinery as a key player in Africa’s energy future—a move applauded by industry experts and economists alike.
