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Nigeria’s energy sector is getting a major lift as Africa’s richest man, Aliko Dangote, expands operations at his $20 billion refinery. The plant, which has a capacity of 650,000 barrels per day, is now supplying an average of 20 million liters of petrol daily to the domestic market, easing the country’s long-standing dependence on imported fuel.
The Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed, disclosed this on Thursday in Lagos during the Association of Energy Correspondents of Nigeria Annual Conference. He said the refinery’s contribution marks a key turning point for Nigeria’s refining sector and the broader push for energy independence.
“Without question, the operation of the 650,000-barrel-per-day Dangote refinery has changed the supply dynamics,” Ahmed said. “We’re seeing a steady rise in local output, and there’s potential for more as production ramps up.”
Strengthening Nigeria’s energy security
Ahmed explained that the country’s daily fuel demand averages 50 million litres, with the refinery already bridging a substantial portion. He added that the NMDPRA views the development as evidence that Nigeria can sustain its fuel needs locally.
Represented by agency spokesperson George Ene-Ita, Ahmed said the regulator is working to consolidate these gains by improving infrastructure, supply, and distribution. He emphasized the need to operationalize a National Strategic Petroleum Stock under the Petroleum Industry Act of 2021 to guard against supply shocks.
Ahmed said the Authority is intensifying licensing and enforcement for storage depots and refining operations to ensure product quality, prevent hoarding, and reduce accidents. He noted that transparency and accountability remain central to attracting investment.
“Every refinery, every pipeline, every megawatt is strengthened by sound regulation,” he said. “We’re focused on making policies predictable and fair so investors can plan with confidence.” He also called on the media to tell the broader story of progress in the sector.
Ahmed described the Dangote Refinery as a cornerstone of Nigeria’s industrial recovery, supporting job creation, foreign exchange savings, and economic diversification. Beyond refining, he said the NMDPRA is promoting investments in liquefied and compressed natural gas to deepen gas utilization across industries.
A broader vision for Nigeria’s energy future
Dangote’s refinery began operations in 2024 with 350,000 barrels per day and has since increased to 650,000 barrels, with plans to reach 700,000 by late 2025. In September, Dangote signed a two-year crude supply deal with the Nigerian National Petroleum Company (NNPC) to ensure steady feedstock and maintain domestic fuel stability through 2027.
Dangote, whose fortune is $29.1 billion according to the Bloomberg Billionaires Index, has also been expanding his regional footprint. Recently, he met Senegalese President Bassirou Diomaye Faye in Dakar to explore new ventures after launching a $2.5 billion fertilizer plant in Ethiopia.
