The Organisation of the Petroleum Exporting Countries (OPEC) has highlighted how the Dangote Petroleum Refinery is helping reduce Nigeria’s reliance on imported fuel.
In its Monthly Oil Market Report released on January 15, 2025, OPEC noted that the Lagos-based refinery has started producing refined petroleum products, easing the country’s heavy dependence on imports to meet domestic fuel demands.
“The ongoing operational ramp-up efforts at Nigeria’s new Dangote refinery and its gasoline exports to the international market will likely weigh further on the European gasoline market,” the report stated.
OPEC emphasized that gasoline production from the refinery is not only addressing Nigeria’s energy needs but is also creating a shift in global fuel trade. According to the report, the refinery’s output is freeing up gasoline volumes in international markets, requiring suppliers to find new destinations for their products.
For decades, Nigeria, Africa’s most populous nation, has faced significant energy challenges. Despite being a leading oil producer, the country has depended almost entirely on imported refined petroleum products due to non-operational state-owned refineries. This reliance has resulted in frequent fuel shortages and high prices for citizens, especially after the removal of subsidies in May 2023, which saw petrol prices rise from around ₦200 per litre to ₦1,000 per litre.
However, the launch of the Dangote Refinery in December 2023 marked a turning point. With an initial capacity of 350,000 barrels per day and plans to scale up to 650,000 barrels per day by the end of 2025, the refinery is positioned to meet both local and international demands.
OPEC’s report underscores the refinery’s potential to transform Nigeria’s energy landscape by reducing import dependency and stabilizing the country’s fuel supply. The refinery’s efforts are expected to ease fuel shortages and create new dynamics in global gasoline trade.
As the Dangote Refinery ramps up production, Nigeria is poised to benefit from a more self-sufficient energy sector, potentially alleviating the economic burden of fuel imports and reshaping the country’s future in oil and gas.