Nigeria’s fuel import era may be drawing to a close. The Dangote Refinery — the world’s largest single-train refinery — has officially reached full operational capacity at 650,000 barrels per day, a milestone that analysts say could save the country up to $10 billion annually in foreign exchange previously spent on fuel imports.
The refinery processed a record 40.1 million litres of crude per day in January 2026, representing 57 percent of total national supply and marking a sharp 25 percent increase from the 32 million litres recorded in December 2025. For the first time in Nigeria’s history, the facility now supplies 62 percent of the country’s Premium Motor Spirit, overtaking fuel importers entirely.
The impact on pump prices has been immediate. The refinery cut its ex-depot petrol price to approximately $0.50 per litre in February 2026, down from $0.53, while diesel prices fell to around $0.65 per litre from earlier levels of as much as $1.04. Meanwhile, petrol imports plunged by more than 54 percent year-on-year in the first quarter of 2025 as domestic supply swelled.
Beyond Nigeria’s borders, the refinery is emerging as a regional energy hub, with diesel and jet fuel already reaching Ghana, Togo, and Cameroon. Nigeria’s total crude production for January 2026 stood at approximately 1.459 million barrels per day, providing a steady feedstock base for sustained output.
Owned by Africa’s richest man Aliko Dangote, the $20-billion plant began operations in 2024 following years of delays. Ambitions, however, remain firmly set on the horizon — the conglomerate has already initiated plans to expand capacity to 1.4 million barrels per day, which would further cement Nigeria’s position as a continental petroleum powerhouse.
Source: orientalnewsng.com | engineeringnews.co.za