Dangote Refinery Scaling Up to 700,000 BPD, Reinforcing Nigeria's Fuel Independence
The Dangote Petroleum Refinery, located in the Lekki Free Trade Zone near Lagos, Nigeria, is indeed undergoing significant modifications to increase its refining capacity from its initial 650,000 barrels per day (bpd) to an ambitious 700,000 bpd. This expansion highlights the Dangote Group's unwavering commitment to maximizing the refinery's output and further solidifying Nigeria's energy independence.
Key Details of the Expansion:
Target Capacity: The primary objective is to add an additional 50,000 bpd to the refinery's nameplate capacity, elevating the total to 700,000 bpd.
Timeline: According to the President of the Dangote Group, Alhaji Aliko Dangote, during a recent tour of the facility, this upgrade is anticipated to be completed by the fourth quarter of 2025.
Reason for Delay in 100% Initial Capacity Attainment: Dangote revealed that the refinery could not reach its initial 650,000 bpd 100% operational capacity sooner in 2025 precisely because of these ongoing modifications. He expressed strong confidence that these modifications would successfully scale up the oil refining capabilities.
Current Operational Status: As of July 2025, the Residue Fluid Catalytic Cracking (RFCC) unit within the refinery is operating at approximately 85% of its capacity. The RFCC is a crucial chemical process that converts heavy residue feedstocks into more valuable, lighter products such as gasoline, liquefied petroleum gas (LPG), and diesel. Dangote noted that other components and departments within the refinery are already operating at 100% or even up to 145% of their design capacity, which bodes well for the overall expansion. The refinery is currently processing around 550,000 barrels of crude per day.
Implications of the Expansion:
Enhanced Energy Security for Nigeria and Africa: The increase to 700,000 bpd will further cement Nigeria's position as a major refined petroleum product producer. This move has the potential to transform Nigeria into a net exporter of refined products, significantly improving energy security for the West African sub-region and potentially other parts of Africa.
Reduced Import Dependence: A higher refining capacity means Nigeria will be substantially less reliant on imported petroleum products. This will lead to significant foreign exchange savings and contribute to strengthening the Naira.
Economic Impact: The expanded operations are expected to further stimulate economic growth, create more direct and indirect jobs across various sectors, and contribute substantially to Nigeria's Gross Domestic Product (GDP).
Increased Crude Oil Demand and Sourcing: To meet its expanded capacity, the refinery will naturally require a larger volume of crude oil feedstock. Dangote recently revealed that the refinery purchased 19 million barrels of crude from the United States between June and July 2025, with the US supplying approximately 55% of its crude needs during that period. This highlights the refinery's reliance on both domestic and international crude sources to maintain and optimize its operations. The refinery also aims to fully transition to processing 100% local crude by the end of 2025.
Overall Vision:
Alhaji Aliko Dangote's decision to build the multi-billion dollar refinery was primarily driven by the vision to make Nigeria, and indeed the entire African continent, self-sufficient in energy. This ongoing expansion to 700,000 bpd is a strong testament to that long-term strategic goal, positioning the Dangote Refinery as a pivotal asset for the continent's energy landscape.
I'm Aisha shehu
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