The President of the Dangote Group, Alhaji Aliko Dangote, has disclosed that the Dangote Petroleum Refinery currently has over 500 million litres of petrol in its storage tanks, positioning Nigeria to meet its local fuel demands while also exporting refined products to other countries.
Dangote made this revelation during a tour of the $20 billion Lekki-based refinery alongside Zambia’s Minister for Energy, Makozo Chikote, on Saturday. The Zambian government is seeking collaboration with the industrialist to help solve its energy security challenges and improve fuel supply in the country.
Dangote Refinery’s Massive Fuel Stock and Expansion Plans
Speaking during the facility tour, Dangote emphasized that the refinery is currently stocked with N600 billion worth of fuel in its tank farm. He added that by next month, the refinery will reach full production capacity of 650,000 barrels per day (bpd), far exceeding Nigeria’s fuel consumption needs.
“We can satisfy more than the local needs of Nigeria. As we speak, we have more than half a billion litres (of petrol) in stock. We have more than N600 billion worth of products in our tanks. The refinery is producing enough refined products, including petrol, diesel, and kerosene, to meet 100 per cent of Nigeria’s requirements.”
Dangote also highlighted the ongoing efforts to secure enough crude oil to sustain the refinery’s operations at full capacity.
“Now we are ramping up production, and we must be at our full capacity by next month. But we have to do a lot in terms of crude supply arrangements,” he said.
Dangote Refinery’s High-Quality Fuel Disrupting Global Markets
Dangote revealed that the refinery’s fuel quality is so high that it is causing refineries in Africa and Europe to struggle. He explained that while most refineries worldwide produce fuel with higher sulphur content, the Dangote Refinery produces ultra-low sulphur fuel, making it the cleanest in Africa and even superior to many refineries in Europe.
“In terms of quality, there is actually no refinery in Africa, or even in Europe, that can produce our type of fuel. Our sulphur content can be as low as zero parts per million (ppm), and our octane number can be as high as 95.”
He added that global regulatory requirements for fuel quality keep changing, but the refinery is designed to adapt to future standards.
“Today, regulations say 150 ppm, tomorrow it’s 50 ppm, but we can produce even zero ppm. This means we can manufacture winter diesel and Euro-5 fuel, which many refineries in this region cannot do.”
According to Dangote, the sheer scale of production at the refinery is disrupting international markets, causing some foreign refineries to shut down.
“Many refineries, especially in Europe, are closing because of our refinery. The more we produce, the less they can sell. Some countries are even offering incentives to refineries just to keep operating, but we are prepared to weather that storm.”
Nigeria’s Fuel Demand vs. Dangote’s Export Plans
Despite its massive production capacity, the refinery’s local fuel consumption accounts for just 40 per cent of its total output. This means that 60 per cent of its refined products will be exported to other countries, particularly in Africa.
“The maximum local consumption in Nigeria is around 40 per cent of what we produce, so 60 per cent will be exported. We are working with banks to ensure most of the products are sold within Africa, making this a true African refinery.”
To tackle financing and trade barriers, Dangote disclosed that discussions are ongoing with Afreximbank to address the letters of credit and financial challenges that often hinder fuel transactions in Africa.
“The main problem in fuel trade has always been letters of credit. We are working closely with Afreximbank to resolve this financing issue.”
Breakdown of Dangote Refinery’s Daily Fuel Production
Vice President of Dangote Group, Davakumar Edwin, explained that the strategic location of the refinery near the sea gives it an advantage in both local distribution and export operations.
He provided a breakdown of the refinery’s daily fuel production capacity, which totals 104 million litres of various petroleum products:
– Petrol (PMS): 57 million litres per day
– Jet Fuel (Aviation Fuel): 20 million litres per day
– Diesel (AGO): 37 million litres per day
Meanwhile, Nigeria’s total daily fuel consumption is just 46 million litres, leaving 58 million litres available for export daily.
According to refinery data, storage capacity is also extensive:
– 600 million litres of petrol, enough to last 18 days
– 408 million litres of aviation fuel, covering 136 days of supply
– 340 million litres of diesel, sufficient for 34 days
– 2.4 billion litres of crude oil storage, lasting 20 days
The refinery currently operates at 550,000 barrels per day, about 85 per cent of its full capacity.
Zambia Seeks Fuel Supply Partnership with Dangote
During the visit, Zambia’s Minister for Energy, Makozo Chikote, highlighted his country’s urgent need for a stable fuel supply and expressed interest in partnering with Dangote Refinery.
Chikote explained that Zambia currently depends on fuel imports through a facility in Dar es Salaam, Tanzania, but this source is overburdened as several other countries, including Burundi, Malawi, and the Democratic Republic of Congo, also rely on it.
“Our government is mandated to ensure energy security for our nation. However, due to policy reforms, we have allowed private players to take charge of petroleum procurement. Currently, 100 per cent of our petroleum imports are handled by the private sector, but we are facing serious challenges.”
He noted that Zambia’s economic growth has been affected by drought, which impacted hydropower generation, the country’s primary electricity source. This has made fuel supply stability even more critical for economic recovery.
“Zambia is heavily reliant on hydropower, and the recent drought has affected our power generation. This has shaken our economy, so we need a stable and affordable fuel supply to support agriculture, mining, and other key sectors.”
Chikote emphasized that Zambia is looking to Dangote to bring competitive fuel pricing and a more efficient fuel supply system to the country.
“We need more competition in our fuel sector. We believe Dangote can bring efficiency, reliability, and affordability to our fuel market, and we want this partnership to happen as soon as possible.”
A New Era for Nigeria’s Fuel Market
The Dangote Refinery’s massive production capacity, high-quality fuel output, and strategic location position it as a game-changer in Africa’s petroleum industry. With over 500 million litres of fuel in stock, full capacity expected by next month, and partnerships with African countries like Zambia, the refinery is set to reshape fuel supply chains across the continent.
As Nigeria moves towards self-sufficiency in fuel production, the refinery also stands to boost the economy through fuel exports, reducing dependence on imports and ensuring energy security for Africa.
