The Dangote Group, owned by Africa’s richest man, announced the commencement of production at Africa’s largest diesel and jet fuel refinery. The company described this development as “a great day for Nigeria.”
The Dangote refinery, with a capacity of 650,000 barrels per day, is poised to end Nigeria’s reliance on imported fuel when operating at full capacity.
The company, owned by Nigerian billionaire Aliko Dangote, expressed hopes of introducing the refinery’s products to the market this month.
However, it did not specify when the refinery would reach full production capacity or begin refining gasoline.
Located on a 2,635-hectare site in the Lekki Free Zone on the outskirts of Lagos, the facility’s construction cost is estimated at around $19 billion, according to local media reports.
“The Dangote Petroleum Refinery has started producing diesel and jet fuel… This is a great day for Nigeria. We are pleased to achieve this important milestone,” the company stated.
Despite being one of Africa‘s largest oil producers and the continent’s biggest economy, Nigeria has almost entirely depended on imported fuel and diesel due to weak local refining capacity.
The country has been exchanging billions of dollars worth of crude oil for subsidized gasoline for years to keep prices low in its domestic market.
Fuel imports and subsidies have massively drained foreign reserves, especially when Nigeria was suffering from reduced oil revenues and a foreign currency shortage.
Initially scheduled to open in 2021, the refinery was officially inaugurated by former President Muhammadu Buhari in 2023, with operations expected to begin in June.
Since taking office in May last year, President Bola Ahmed Tinubu has ended fuel subsidies and floated the local currency, the Naira, in economic reforms he says will attract foreign investment and contribute to long-term growth.
