In a major development for Nigeria's energy sector, the Dangote Refinery has announced it is now producing 50 million litres of Premium Motor Spirit (PMS), commonly known as petrol, every single day. The facility's Managing Director and Chief Executive Officer, David Bird, provided this update while outlining an ambitious plan to more than double the refinery's capacity within the next three years.
24-Hour Operations End Fuel Queues
The refinery's around-the-clock loading operation is a key driver of its success, dispatching over 1,000 trucks daily to distribute fuel across the nation. Bird emphasized that this massive logistical effort has been instrumental in eliminating the chronic fuel scarcity that once plagued Nigerian cities, especially during peak holiday periods. He stated that the high production is effectively matched by efficient distribution, reinforcing supply stability nationwide.
"So, we have been easily able to achieve over 1,000 trucks of offtake. So it’s not just the production, it’s also the offtake that has achieved that 50 million litres a day," Bird explained. He highlighted the plant's flexibility, noting it is not merely a crude processor but a "merchant refining, blending and trading platform" capable of making finished products from various feedstocks.
Ambitious Expansion Through "Roofless Replication"
Looking ahead, Bird revealed a bold strategy to expand the refinery's capacity from its current 650,000 barrels per day to 1.4 million barrels per day (mbpd) by 2026. To avoid the delays and cost overruns typical of mega-projects, Dangote will employ a "roofless replication" strategy. This means essentially copying the existing, proven design without revisiting detailed engineering work.
"Once you let engineers go back into an expansion, they often start to tinker, and that sends you back into months or years of detailed engineering," Bird said. "The idea here is replication. We will not need to reengineer, so we can get straight into ordering long-lead items and commencing construction." This approach is expected to fast-track procurement and construction significantly.
Addressing Market Concerns and Future Plans
During the briefing, Bird and other Dangote officials addressed several pressing issues. The MD dismissed claims from some industry players that the refinery's petrol price of N739 per litre was "anti-competitive." On crude supply, Bird noted that between 30% and 40% of the refinery's feedstock comes from the Federal Government's crude-for-naira programme, and they will continue engaging with the NNPCL to improve allocations.
Anthony Chiejina, Head of Communications for the Dangote Group, added that the ongoing crisis in Venezuela's oil sector presents a benefit for Nigeria. For the future, Bird outlined plans beyond fuels, stating that polypropylene production is central to their strategy, with potential future diversification into detergents, base oils, lubricants, and Liquefied Petroleum Gas (LPG) to meet local demand and drive import substitution.
Located in the Lekki Free Trade Zone, the $20 billion Dangote Refinery is already the world's largest single-train refinery. Its planned expansion to 1.4 mbpd would cement its status as one of the globe's biggest refining complexes and dramatically alter Africa's fuel supply landscape, reducing the continent's long-standing dependence on imported refined products.
