Lagos, Nigeria – The President of the Dangote Group, Alhaji Aliko Dangote, has affirmed that the Dangote Petroleum Refinery has an abundant fuel supply, currently holding over 500 million liters of petrol in its reservoir. This revelation underscores the refinery’s ability to meet Nigeria’s local fuel demand while also supplying other countries across Africa.
Dangote made this announcement on Saturday during a guided tour of the $20 billion Lekki-based facility with Zambia’s Minister for Energy, Makozo Chikote. The visit aimed to explore potential collaborations to address Zambia’s energy security challenges.
Refinery at Full Capacity Next Month
According to Dangote, the refinery currently holds stock valued at over N600 billion in its tank farms. He assured that the facility is well-equipped to supply refined petroleum products, including petrol, diesel, and kerosene, sufficient to cater to 100% of Nigeria’s needs. Furthermore, he revealed that by next month, the refinery is expected to reach its full production capacity of 650,000 barrels per day.
“We can satisfy more than the local needs of Nigeria. As we speak, we have more than half a billion liters of petrol. We have over N600 billion worth of stock in our refinery. The refinery is producing refined products that meet the total requirement of Nigeria,” Dangote stated.
Despite the refinery’s current capacity, Dangote noted that arrangements were still being made to ensure a steady supply of crude oil, which is crucial for ramping up production.
Global Standard Fuel Quality and Market Impact
Dangote emphasized that his refinery produces top-tier fuel, setting a new benchmark in the industry. He disclosed that due to the high quality of its output, many refineries in Europe are shutting down as they struggle to compete.
“No refinery in Africa and even across Europe can match our quality. The sulphur content in our fuel is as low as zero parts per million (ppm), and the octane number can be as high as 95. We are ahead of regulatory changes. Today, the acceptable level might be 150 ppm, tomorrow it might be 50 ppm, but we can already produce at zero ppm,” Dangote said.
He further stated that the facility can produce winter diesel and Euro-5 fuel, which are considered premium and environmentally friendly.
“The reality is that when we flood the market with our products, some existing refineries will struggle to sell their fuel. This is why some countries offer subsidies just to keep their refineries operational,” he added.
Fuel Distribution: Meeting Local and Export Needs
Dangote disclosed that Nigeria’s fuel consumption accounts for only 40% of the refinery’s total production, while 60% is designated for export. The refinery is engaging with Afreximbank to address financing challenges, particularly issues related to letters of credit.
“The local consumption is about 40%, while 60% of our output will be exported. We are working with some banks to ensure that most of the products are sold within Africa, making this a truly African refinery. The key challenge has always been financing, particularly letters of credit, and we are actively working with Afreximbank to resolve this issue,” he explained.
Regarding fuel types, Dangote highlighted that premium motor spirit (PMS) remains the most consumed fuel in Nigeria, especially since the removal of subsidies has altered market dynamics.
“The highest demand is for PMS, as it is the primary fuel used by Nigerians. However, we also have a competitive edge in diesel, aviation fuel, and other refined products. Aviation fuel demand in Africa is relatively low because there aren’t many flights, but the market for PMS is quite large,” he noted.
Strategic Advantage and Storage Capacity
Dangote Group’s Vice President, Davakumar Edwin, emphasized the strategic positioning of the refinery due to its proximity to the sea, which facilitates seamless export operations.
During a data presentation, Edwin outlined the refinery’s impressive daily production capacity:
- 57 million liters of petrol (PMS)
- 20 million liters of jet fuel
- 37 million liters of diesel
With Nigeria’s total daily consumption standing at approximately 46 million liters, the excess 58 million liters are designated for export.
The refinery’s tank farm is equipped to store fuel for several days:
- 12 tanks for 600 million liters of petrol (enough to last Nigeria for 18 days)
- 17 tanks for 408 million liters of aviation fuel (136 days supply)
- 14 tanks for 340 million liters of diesel (34 days supply)
- 20 tanks for 2.4 billion liters of crude oil (20 days supply)
Overall, the refinery boasts a total of 177 tanks with a cumulative storage capacity of 4.742 billion liters. It is currently operating at 550,000 barrels per day, which is approximately 85% of its full capacity.
Contradictions in PMS Supply Reports
Last week, the Nigerian Midstream and Downstream Petroleum Regulatory Authority stated that local refineries were unable to meet 50% of Nigeria’s daily PMS consumption of about 50 million liters per day. As a result, the country still relies on imported petrol to bridge the gap. Dangote’s announcement appears to contradict this claim, as he maintains that his refinery alone can meet 100% of the nation’s fuel needs.
Zambia Seeks Energy Partnership with Dangote Refinery
Zambia’s Minister for Energy, Makozo Chikote, expressed his government’s keen interest in collaborating with Dangote to address the country’s energy security issues. He noted that Zambia has moved towards private sector-led fuel importation and is now looking for reliable partners.
“Our priority is securing a stable fuel supply for Zambia. Due to reforms, the government is no longer directly involved in fuel procurement, and we have created an environment that allows private sector participation. However, we are facing several challenges, including congestion and delays in supply,” Chikote stated.
He revealed that Zambia currently relies on Tanzania’s Dar es Salaam facility for fuel imports, a supply route also used by neighboring countries like Burundi, Malawi, and the Democratic Republic of Congo.
“With increased competition in our energy sector, we are looking at Dangote as a major player who can provide competitive pricing, reliable supply, and high-quality products. Our economic growth depends heavily on energy availability, especially for mining and agriculture, so we need a dependable supplier like the Dangote refinery,” Chikote added.
He also highlighted that Zambia has been impacted by climate change, particularly drought, which has reduced hydropower generation and affected economic productivity.
“As a country, we must prioritize energy security to drive productivity in mining and agriculture. We see the Dangote refinery as an important player in this mission. We are eager to establish strong partnerships that will benefit Zambia and its economy,” Chikote concluded.
Conclusion
With its world-class fuel quality, large storage capacity, and increasing production capabilities, the Dangote Refinery is poised to play a critical role in Nigeria’s energy sector and beyond. As it prepares to ramp up production to full capacity next month, its impact on local supply and regional fuel markets will become even more significant. Meanwhile, Zambia’s interest in a partnership signals a broader African reliance on Dangote’s facility to enhance energy security across the continent.
