The Dangote Oil Refinery, Africa’s largest, is about to achieve full capacity. Built by billionaire Aliko Dangote, it began producing diesel, naphtha, and jet fuel last year. Petrol production started in September. Now, the refinery operates at 85% capacity and aims to reach 100% soon.
Challenges arose due to local crude oil shortages. Despite an agreement to buy crude in naira, the refinery had to import oil last year. To address this, it requested 550,000 barrels per day from Nigerian producers. The oil regulator warned that export permits will be blocked for those who don’t meet local supply quotas.
Recently, the refinery sent two shipments of jet fuel to Saudi Aramco as part of its market expansion. Dangote and Edwin Devakumar, the refinery’s head, are exploring all potential markets for their products.
Reaching full capacity could boost Nigeria’s economy. It would reduce dependence on imported products, saving significant foreign exchange. Additionally, the refinery’s operations are expected to create many jobs, aiding regional growth.
Looking ahead, the refinery plans to adopt sustainable practices. Technological advancements will enhance efficiency and productivity.
The journey to full capacity is a pivotal moment for Africa’s oil industry. The Dangote Oil Refinery’s impact on Nigeria’s economy and the broader market will be closely watched.