The President of Dangote Group, Alhaji Aliko Dangote, has disclosed that the Dangote Petroleum Refinery currently holds over 500 million litres of petrol in its reservoir, ensuring ample supply for both local consumption and export.
Speaking during a tour of the $20 billion refinery in Lekki, Lagos, alongside Zambia’s Minister for Energy, Makozo Chikote, Dangote highlighted the refinery’s capacity to meet Nigeria’s fuel needs.
“We can satisfy more than the local needs of Nigeria. As we speak, we have more than half a billion litres (of petrol). We have more than N600bn worth of stocks here today in the refinery. We have more than enough. The refinery is producing enough refined products, like gasoline, diesel, and kerosene, to meet 100 per cent of Nigeria’s requirements,” he stated.
He further revealed that the plant is on track to reach its full production capacity of 650,000 barrels per day next month, emphasizing that Nigeria does not consume more than 50 per cent of its refined products.
Dangote also noted that necessary arrangements are being made to secure an adequate supply of crude oil to sustain production growth.
“Now we are ramping up production. We must be at our full capacity by next month. But we have to do quite a lot of arrangements in terms of crude supply,” he added.
Unmatched Fuel Quality
Dangote highlighted that his refinery produces fuel of superior quality compared to others across Africa and Europe.
“In terms of quality, there is actually no refinery in Africa, even in Europe, that can produce our type of quality. We want to be flexible, you know the laws keep changing.
“Today, they will say 150 parts per million; tomorrow it’s 50 ppm, but we can produce up to zero ppm. This means we can do winter diesel, we can do Euro-5. No refinery around here can do that. When you read the news, you see that a lot of refineries now, especially in Europe, are shutting down because of our own refinery,” he stated.
He added that Nigeria’s local fuel consumption accounts for only 40 per cent of the refinery’s production, while the remaining 60 per cent is designated for export.
Boosting African Trade
To ensure smooth international trade, Dangote revealed that the company is working with Afreximbank to address the challenges of letters of credit and financing.
“The maximum local consumption is around 40 per cent, but 60 per cent will be exported. We are making a lot of arrangements with some banks to make sure most of the products are sold within Africa; so that it can be a real African refinery, not done just for us to come and process raw materials and ship the products outside Africa. The problem has always been letters of credit; we are working with Afreximbank to resolve that financing issue,” he explained.
Speaking on the most consumed fuel products, he noted, “We have competitive advantages over PMS, diesel, aviation fuel, and others. The consumption of aviation fuel in Africa is very low because we don’t have too many aircraft flying around. PMS is what people use a lot. Here in Nigeria, most discussions are on PMS. You know we just deregulated, and everybody is trying to find his feet. Now that the subsidy is gone, things are ramping up.”
Strategic Location and Production Capacity
The Vice President of Dangote Group, Davakumar Edwin, underscored the refinery’s strategic location near the sea, which facilitates seamless exports.
He further detailed the refinery’s production capacity, noting that it produces 104 million litres of different petroleum products daily.
“57 million litres of petrol every day, 20 million litres of jet fuel, 37 million litres of diesel is our daily production. The local consumption is just 46 million litres. The rest, 58 million litres, will be exported on a daily basis,” Edwin explained.
Storage capacity is also a significant advantage, as the refinery houses:
– **600 million litres of petrol**, which can serve Nigeria for 18 days
– **408 million litres of aviation fuel**, sufficient for 136 days
– **340 million litres of diesel**, enough for 34 days
– **2.4 billion litres of crude oil**, stored in 20 tanks for 20 days
In total, the refinery has **177 storage tanks with a capacity of 4.742 billion litres**.
Currently, the refinery operates at 550,000 barrels per day, which is 85 percent of its full capacity.
Despite these achievements, the Nigerian Midstream and Downstream Petroleum Regulatory Authority recently stated that local refineries, including Dangote’s, cannot yet meet 50 per cent of Nigeria’s daily PMS demand, necessitating fuel importation to fill the gap.
Zambia Seeks Dangote’s Support for Energy Security
During the visit, Zambia’s Minister for Energy, Makozo Chikote, expressed interest in collaborating with Dangote Refinery to address his country’s energy challenges.
He emphasized the Zambian government’s mandate to secure a stable fuel supply while fostering private-sector participation in the energy industry.
“We depend on our good neighbours that surround us. This is why you see us depending on Dar es Salaam, Tanzania. Burundi is looking at the same facility. Malawi is looking at the same facility. The Democratic Republic of Congo is also looking towards the same facility. This results in too high congestion, delays, and all those challenges,” Chikote stated.
He also highlighted Zambia’s struggles with power generation due to a recent drought, which heavily impacted its hydropower-dependent energy sector.
“As a country, we are targeting to increase productivity in mining and agriculture, but through having sufficient, reliable energy to address these challenges. So, now, the reason why we find ourselves here is to start exploring opportunities that will start addressing the difficulties,” he said.
Chikote called for enhanced intra-African trade, urging countries to collaborate to strengthen the continent’s energy security and economic stability.
“From what we have seen, we need to promote trade within Africa to support each other. We need countries to come together to make Africa efficient and a reliable trade hub.
“We have seen here that we can learn from what Dangote has done, and this would lead Africa and Africans to stand on their feet and not depend on overseas support in terms of trade. I believe, going forward, that people have learned a few lessons. The one lesson I have learned from this visit is that Dangote looks at the bigger picture for Africa,” he said.
In response, Dangote reaffirmed his commitment to Africa’s energy self-sufficiency.
“This refinery is not only for Nigeria; it is for Africa. We must sustain the African Continental Free Trade Area deal. We are trying to see how we trade with other African countries,” he stated.
