The Dangote Oil Refinery, Africa’s largest single-train refinery, has started operations in Nigeria. Owned by Aliko Dangote, Africa’s richest man, the refinery has a capacity of 650,000 barrels per day and is expected to meet 100% of Nigeria’s needs for gasoline, diesel, kerosene, and aviation jet fuel. The refinery has the potential to significantly impact Nigeria’s fuel dependence and even its exchange rate.

The development of the Dangote Refinery is expected to create a new domestic market for Nigeria’s crude and improve the performance of the oil refining sub-sector of the manufacturing industry. The refinery’s operations will also improve the productivity of the country’s manufacturing sector, particularly the trade and exchange rates. The facility has the potential to boost refining capacity in Nigeria, which has struggled for years due to poor maintenance of state-run refineries.

The Dangote Refinery has received its first cargo of 1 million barrels of crude oil from Shell International Trading. The refinery’s focus over the coming months is to ramp up its operations to its full capacity. The start of operations at the Dangote Refinery is a significant achievement for Nigeria, as it demonstrates the country’s ability to develop and process its own crude oil rather than relying on imports.

Photo by Dangote Group