Dangote refinery achieves 50 million litres daily output, sets sights on major expansion

Dangote Petroleum Refinery Plc has reached a major milestone in Nigeria’s energy sector, achieving a daily offtake of 50 million litres of Premium Motor Spirit (PMS), even as it prepares for an ambitious expansion that will nearly double its refining capacity.

Speaking at a press briefing at the refinery complex on Wednesday in Lagos, Managing Director David Bird said the facility’s consistent performance during the recent Christmas and New Year holiday period demonstrated its ability to meet domestic demand reliably while maintaining world-class fuel quality.

“Our refinery is currently moving over a thousand trucks of fuel daily, translating to a daily offtake of 50 million litres.

”Production has been stable, and when demand fluctuates, we can adjust or export excess volumes,” Bird explained.

He emphasised that the refinery’s output meets Euro 5 standards, offering cleaner fuel with significantly lower sulphur content, a marked improvement over historically substandard products circulating in West Africa.

Bird noted that domestic refining has been critical in stabilising fuel prices and supporting the naira against international shocks.

“By producing locally, we shield Nigeria from the volatility of global crude and refined product markets,” he said, adding that the refinery’s operations were designed not just to supply fuel but to support economic stability nationwide.

Also, Anthony Chiejina, Head of Communications at Dangote Group, highlighted that ongoing crises in global oil-producing countries, such as Venezuela, further underscored the importance of local refining capacity.

“Being able to produce domestically ensures that Nigeria is not held hostage to international price swings,” he said.

While celebrating the refinery’s current performance, Bird announced plans to expand the facility’s processing capacity from 650,000 barrels per day to 1.4 million barrels per day within three years.

The strategy, he said, relied on duplicating the existing plant design, allowing construction to commence immediately without the delays typically associated with re-engineering.

“We call it ruthless replication. All the groundwork has been prepared, the land has been reclaimed and elevated, so we can move straight into procurement of long-lead equipment and early construction works such as piling and foundations,” Bird said.

He added that steel structures were expected to rise before the end of the year, signaling rapid progress toward the refinery’s full expansion.

This increase in capacity is expected to cement Nigeria’s position as a major producer of refined petroleum products, reduce reliance on imports, and enhance energy security.

Bird also noted that polypropylene production would rise from the current 800,000 tonnes to 2.4 million tonnes, supporting the growth of domestic manufacturing and industrial diversification.

According to Bird, the refinery is not merely a crude processing plant; it is designed as a highly flexible merchant refining, blending, and trading hub capable of responding to both domestic and export demands.

The refinery’s strategy emphasised import substitution, industrial integration, and price stability.

“Local refining allows Nigeria to offer world-class fuel to its population while building a strong industrial ecosystem,” he said.

“Our objective is to provide a stable supply of high-quality fuel, reduce costs, and generate long-term economic benefits for the country.”

Bird also reaffirmed the refinery’s commitment to the crude-for-naira programme, which supplies 30–40 per cent of the refinery’s crude feed, contributing to the stabilization of the naira and the domestic petroleum market.

With a robust production base already in place and an aggressive expansion plan on the horizon, Dangote Refinery is positioning itself as one of the largest refining complexes in the world.

Industry analysts said that achieving the planned 1.4 million barrels per day capacity will significantly enhance Nigeria’s refining capability, reduce dependence on imported fuels, and generate substantial foreign exchange earnings.