May 25 (THEWILL) — The operational expansion of the 650,000-barrels-per-day Dangote Petroleum Refinery & Petrochemicals is significantly reducing Nigeria’s dependence on imported fuel and strengthening the country’s external position, according to the Economist Intelligence Unit (EIU).
In its latest assessment of Nigeria’s fuel market, the EIU said the refinery has transformed a downstream sector previously characterised by heavy reliance on imported petroleum products despite Nigeria being Africa’s largest crude oil producer. The report noted that the refinery supplied nearly 80 percent of domestic petrol demand in April and is approaching volumes capable of fully meeting local consumption needs.
The EIU described Nigeria’s downstream sector before the refinery as “long dysfunctional”, noting that state-owned refineries had remained largely inactive for years while the country depended heavily on costly imports.
According to the report, the refinery’s ramp-up has improved domestic fuel availability, reduced import demand, and strengthened Nigeria’s balance of payments through rising exports of refined petroleum products.
“The gradual ramp-up of the 650,000 barrel/day Dangote refinery since May 2023 has transformed Nigeria’s long dysfunctional downstream sector”, the EIU stated.
The report added that the refinery’s attainment of full operational capacity and planned future expansion would support Nigeria’s GDP growth and foreign exchange earnings over the medium term.
Analysts said the refinery is also reshaping Africa’s energy trade flows by positioning Nigeria as an emerging regional refining hub while reducing exposure to foreign exchange volatility and global fuel supply disruptions.
The EIU noted that the refinery’s growth has coincided with major downstream reforms, including subsidy removal and market-driven fuel pricing, although tensions remain over continued fuel import approvals despite increasing domestic refining capacity.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
