The Dangote Petroleum Refinery, Africa’s largest single-train refining facility, is undergoing a major upgrade to boost its nameplate capacity from 650,000 barrels per day (bpd) to 700,000bpd by the fourth quarter of 2025. This upgrade is expected to further consolidate Nigeria’s position as a potential net exporter of refined petroleum products and reduce dependence on imported fuel.
During a recent media tour of the refinery in Lekki, Lagos, President of the Dangote Group, Alhaji Aliko Dangote, disclosed that the refinery is currently operating below optimal capacity due to ongoing modifications, particularly in the Residue Fluid Catalytic Cracking (RFCC) unit. The RFCC, which converts heavy residue feedstock into lighter petroleum products like petrol, LPG, and diesel, is running at 85% capacity as of July 2025.
“We are not at 100 per cent yet because of the ongoing modifications, which will be completed by the end of the year. Once done, we expect to hit 700,000 barrels per day. In fact, most other units have already reached full capacity, with some exceeding expectations at 145 per cent,” Dangote revealed.
Dangote also confirmed that the refinery purchased 19 million barrels of crude oil from the United States between June and July 2025, with 10 million barrels delivered in early July alone. This accounts for 55 per cent of the refinery’s crude supply, signaling a diversification of crude sourcing beyond Nigeria and other African producers.
The refinery, which began operations in January 2024, currently refines diesel, aviation fuel, and Premium Motor Spirit (PMS) for both local and West African markets. With its current output already covering a significant portion of Nigeria’s fuel consumption, analysts say the 700,000bpd capacity will enable Dangote to dominate regional fuel supply chains.
Dangote, Africa’s richest man, reflected on the challenges that accompanied the $20 billion refinery project, admitting that he might not have embarked on it had he known the scale of difficulties involved.
“People think building a refinery is like building a house. If I knew what we were going to face, I wouldn’t have started it at all. But we kept pushing, knowing Africa needed this. Apart from Algeria and Libya, most African countries depend on imports,” he explained.
The billionaire revealed that his initial plan to buy Nigeria’s government-owned refineries was blocked in 2007 under former President Umar Musa Yar’Adua, prompting him to build a private refinery instead.
The refinery’s growing market share has triggered debates about its potential to dominate the downstream petroleum sector. Industry observers warn that while Dangote’s refinery is reducing fuel scarcity and stabilizing pump prices, its increasing control over crude sourcing and distribution could create a near-monopoly, leaving smaller marketers and transporters vulnerable.
Earlier this week, tanker drivers raised concerns over job losses as Dangote announced plans to distribute fuel directly using 4,000 Compressed Natural Gas (CNG) trucks starting August 15, 2025.
However, Dangote insists that his focus is on ensuring energy security for Nigeria and Africa, accusing foreign actors of attempting to sabotage local industries through cheap imports.
“In Lomé, you can see ships loaded with imported products waiting to dump them in Africa. We took this risk because someone had to,” he said.
The refinery’s upgrade to 700,000bpd could significantly alter Nigeria’s energy landscape by:
Reducing PMS and diesel imports, saving billions in foreign exchange.
Boosting regional exports, making Nigeria a key supplier to West Africa.
Potentially lowering pump prices if competition increases among local refineries.
Industry stakeholders, however, urge the federal government to revive state-owned refineries to prevent Dangote’s monopoly from negatively impacting long-term pricing.