LAGOS, Nigeria - The Dangote Petroleum Refinery now supplies 92 percent of the petrol in the Nigerian market, a development that has led the Federal Government to pause its own importation of the product.
Officials from the Nigerian Midstream and Downstream Petroleum Regulatory Authority confirmed the shift in supply dynamics. The state-owned Nigerian National Petroleum Company Limited has halted the landing of imported petrol cargoes for now.
The refinery, located in the Lekki Free Zone near Lagos, began operations in early 2024. It has steadily increased production over recent months, reducing the need for imports.
According to documents seen by local media, the facility is processing about 350,000 barrels per day. Full capacity is listed at 650,000 barrels per day, which would make it one of the largest refineries in Africa.
Industry analysts said the pause in imports marks a major change for Nigeria, which for years relied on foreign sources for refined fuel despite being a major crude oil producer.
The country operates four other state-owned refineries, but they have produced little to no fuel for years due to maintenance issues and neglect.
Government officials said the decision to pause imports allows the NNPC to test the reliability and consistency of local supply from the Dangote plant.
The refinery produces petrol that meets current Nigerian standards. It also produces diesel and aviation fuel for the local market.
NNPC has been the sole importer of petrol into Nigeria for years under a subsidy arrangement. The government ended the subsidy in 2023, which changed the economics of fuel supply.
The state oil company said it will continue to monitor supply levels. It may resume imports if gaps appear in domestic availability.
Oil marketers said the pause could lead to lower prices if competition increases. But they warned that the refinery must maintain steady output to prevent shortages.
The Dangote refinery was built by Aliko Dangote, president of the Dangote Group. Construction took several years and cost billions of dollars.
The facility includes a single-train refinery, a petrochemical plant, and a fertilizer unit. It is designed to process various grades of crude, including Nigeria’s light oil.
Experts said local refining could strengthen Nigeria’s economy by keeping more value inside the country. It could also improve energy security.
The government has encouraged private investment in refining for decades. The Dangote plant is the first major private refinery to begin production.
NNPC has discussed supplying crude to the refinery in naira instead of dollars. That arrangement would ease pressure on foreign reserves.
Talks are ongoing between the company and the refinery to finalize the terms.
The pause in imports comes at a time when global oil prices remain volatile. Nigeria imports most of its crude-grade products from Europe.
Industry observers said a sustained supply from Dangote could reduce the country’s exposure to international price swings and shipping delays.
The regulatory authority said it will release updated data on national fuel stocks later this week.