The Dangote Group has announced the commencement of production at Africa’s largest diesel and aviation fuel refinery. The mega-project, spearheaded by Nigerian billionaire Aliko Dangote, marks a pivotal moment for the country, aiming to curb its dependence on fuel imports.
The Dangote refinery, with a capacity of 650,000 barrels per day, is poised to reshape Nigeria’s energy landscape once it reaches full operational capacity. Despite initial hopes of having products on the market this month, specific details regarding when the refinery will achieve full production or commence petrol refining remain unclear.
Situated on 2,635 hectares at the Lekki Free Zone on the outskirts of Lagos, the refinery is a colossal undertaking, estimated to have cost around $19 billion. The project has encountered delays but is now making strides toward its goal.
“Dangote Petroleum Refinery has commenced production of diesel and aviation fuel,” announced the Dangote Group. “This is a big day for Nigeria. We are delighted to have reached this significant milestone.”
Despite being a major oil producer in Africa and boasting the continent’s largest economy, Nigeria has historically grappled with fuel shortages due to a lack of domestic refining capacity. The country heavily relies on imported fuel and diesel, incurring substantial costs and foreign exchange drains.
The refinery, initially slated for opening in 2021, faced delays but was officially inaugurated earlier this year by then-president Muhammadu Buhari. Intended to begin operations in June, the facility’s timeline has experienced adjustments.
President Bola Ahmed Tinubu, who assumed office in May last year, has implemented economic reforms, including ending the long-standing fuel subsidy and floating the naira currency. These reforms are positioned to attract foreign investment and foster long-term growth in Nigeria.