How Dangote Built His Massive Refinery Without Any Help From The Nigerian Governmen

The President of Dangote Group, Aliko Dangote, revealed that his 650,000 barrels per day refinery was constructed without any incentives from the Nigerian government. He shared this during the Crude Oil Refinery Owners Association of Nigeria Summit in Lagos.

Speaking through the Executive Director of Dangote Group, Engr. Mansur Ahmed, Dangote noted that the refinery is already meeting Nigeria’s demand for diesel and jet fuel.

The $20 billion refinery, which became operational on January 12, 2024, initially had a refining capacity of 300,000 barrels per day but increased to 400,000 barrels by September 2024. On September 15, the refinery began distributing petrol, with the Nigerian National Petroleum Company Limited (NNPCL) as its sole off-taker.

Dangote pointed out that despite being Africa’s largest crude oil producer, Nigeria has long relied on imports to meet its refined petroleum needs. With the refinery now producing petrol, NNPCL set new fuel prices ranging from N950 to N1,100 per liter at its retail outlets across the country.

In September 2024, Dangote also called on the Nigerian government to fully remove fuel subsidies. Despite potential financial losses, Dangote Refinery agreed to President Tinubu’s proposal regarding the naira, in the interest of economic stability.

He emphasized that the Dangote Refinery will play a significant role in stabilizing Nigeria’s fuel market and strengthening the naira.