Yemisi Izuora
Nigeria would be saving up to $10 billion annually in foreign exchange previously spent on fuel imports as Dangote Refinery sustains capacity production.
The refineryprocessed a record 40.1 million litres of crude per day in January, representing 57 per cent of tthe otal supply and marking a 25 per cent increase from 32 million litres in December 2025.
The refinery now supplies 62 per cent of the country’s Premium Motor Spirit, overtaking fuel importers for the first time ever. The giant plant the world’s largest single-train refinery–finally reached full operational capacity at 650,000 bpd, marking an important milestone in Nigeria’s efforts to cut reliance on imported fuel.
Nigeria’s total crude oil production for January 2026 was approximately 1.459 million barrels per day. The Dangote refinery has reached full capacity after completing the stabilization and optimization of its core units, specifically the Crude Distillation Unit (CDU) and the Motor Spirit (MS) production block.
The Dangote refinery has begun to ease fuel price pressures in Nigeria, cutting its ex-depot petrol price to about $0.50 per litre in February 2026, down from roughly $0.53 previously. Diesel prices were reduced to around $0.65 per litre, down from earlier levels of approximately $0.78 to $1.04. During the festive season, the refinery briefly lowered petrol prices to about $0.45 per litre before adjusting them back to roughly $0.52.
Higher domestic output from the refinery is expected to curb Nigeria’s reliance on imported fuel. Projections indicate the country could save up to $10 billion annually in foreign exchange previously spent on fuel imports. The impact has been significant, with petrol imports falling by more than 54 per cent year-on-year in the first quarter of 2025 as local supply increased.
Beyond the domestic market, the refinery is also supplying refined products to other African countries. Diesel and jet fuel shipments have reached Ghana, Togo, and Cameroon, positioning the facility as a regional export hub and a key player in Nigeria’s fuel market.
However, Aliko Dangote is not about to rest on his laurels and has initiated plans to expand the refinery’s capacity to 1.4 million barrels per day, which would further boost the economy through increased petrochemical production.