The Dangote Petroleum Refinery has dismissed reports suggesting that it is planning to shut down its petrol unit for repairs lasting up to three months.
The management of the $20 billion facility, Africa’s largest single-train refinery, described such claims as “fake news” and urged the public to disregard them.
A Reuters report, citing industry monitor IIR Energy, had claimed that the refinery’s 204,000 barrels-per-day Residue Fluidised Catalytic Cracking Unit (RFCCU) had been shut since late August due to catalyst leaks.
The report further suggested that while the refinery might attempt a restart by September 20, major repairs could extend the shutdown for months.
But in a swift reaction on Sunday, the Group Chief Corporate Communications Officer of Dangote Group, Anthony Chiejina, dismissed the speculation.
“Fake news. Why ‘could’ if they are sure?” Chiejina asked rhetorically, while insisting that the refinery was operating normally and had no plan to halt petrol production.
Since commencing crude processing in January 2024, the 650,000 bpd refinery has altered global fuel trade flows and reduced Nigeria’s dependence on imported refined products.
The refinery has already exported cargoes to the United States East Coast—a major milestone given America’s strict fuel standards—and cut European gasoline exports to Nigeria by nearly 40 percent in the first half of 2025, according to data from Kpler.
In August, the refinery also imported Ghana’s Sankofa crude for the first time, signaling its flexibility in processing a variety of crude grades beyond Nigeria’s light sweet crude.
This diversification strategy, analysts note, strengthens its resilience against local supply disruptions and opens doors to regional crude trading partnerships.
Industry monitors estimate the refinery is currently processing about 445,000 barrels per day, representing 68 percent of its full capacity.
Operations are expected to remain steady, though a minor dip to 400,000 bpd is projected during routine maintenance between December 2025 and January 2026.
The clarification from Dangote comes at a critical moment, as Nigerians brace for possible disruptions in fuel supply due to an unrelated industrial action declared by the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG).
The union is protesting alleged anti-labour practices linked to the recruitment of drivers for Dangote’s planned 4,000 Compressed Natural Gas (CNG)-powered trucks.
Analysts warn that the combination of labour unrest and global oil market volatility could heighten public anxiety over fuel availability.
However, Dangote’s assurance that its petrol unit remains active has temporarily eased fears of immediate scarcity.
Petroleum marketers have welcomed the refinery’s clarification but urged both the Federal Government and private operators to communicate transparently with the public to avoid panic buying and artificial scarcity.
One of the persistent challenges for the refinery has been sourcing adequate local crude supply.
Despite being Africa’s top oil producer, Nigeria has struggled with underproduction due to theft, vandalism, and declining investment.
As a result, the refinery has increasingly turned to international markets for feedstock.
In July, crude deliveries to the refinery peaked at 570,000 bpd—its highest monthly volume so far—with 60 percent sourced from the United States and 40 percent from Nigerian grades like Bonny Light and Escravos.
This marked the first time U.S. crude outpaced Nigerian supply in the Dangote mix, underscoring the competitiveness of West Texas Intermediate (WTI) and the refinery’s adaptability to shifting market dynamics.
The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, recently reiterated that Nigeria must urgently increase crude output to meet both domestic refining needs and export commitments.
The Dangote Refinery aims to ramp up its processing capacity to 700,000 barrels per day by December 2025, a move expected to further reposition Nigeria as a regional refining hub.
Experts believe this expansion will not only cut the country’s multi-billion-dollar annual fuel import bill but also stabilise the naira by reducing forex demand for imports.
For now, Dangote’s dismissal of shutdown rumours provides relief to Nigerians already grappling with high inflation, unstable power supply, and looming industrial actions.
But the incident has also highlighted the sensitivity of the Nigerian economy to refinery operations, market speculation, and labour disputes.
With fuel supply chains under close watch, industry observers stress that transparency, effective government regulation, and robust dialogue between stakeholders are crucial to avoiding shocks that could destabilise Africa’s largest economy.
