In a groundbreaking development, the Dangote Refinery, poised to become Africa’s largest oil processing facility, is projected to generate an impressive annual revenue of $27 billion at full operational capacity, according to exclusive information obtained by Nairametrics.
With a refining capacity of 650,000 barrels per day (bpd), the refinery is anticipated to play a pivotal role in Nigeria’s economic transformation, as noted by billionaire industrialist Femi Otedola. The initial phase of production will see the refinery processing 350,000 bpd, focusing on the production of diesel, aviation fuel, and gas, while the production of petrol is scheduled for a later stage.
Funds for this ambitious project will be allocated to the production of a diverse range of fuels, including petrol, aviation fuel, kerosene, and diesel. Furthermore, the refinery will manufacture urea and polypropylene for both domestic and international markets, with special products like naphtha and polypropylene expected to boost growth in industries such as cosmetics, plastics, and textiles.
The Dangote Refinery, designed to process Nigerian crude oil, is versatile enough to handle crude from various sources, including other African countries, the Middle East, and the United States. According to the company’s projections, the production of motor gasoline (petrol) is set to increase significantly, reaching approximately 249,000 bpd by 2026 and exceeding 300,000 bpd by 2033. This surge in production is expected to result in a drastic reduction in petrol imports, dropping to 154,000 bpd by 2026.
In a significant milestone, the refinery received its first batch of crude oil, following a supply agreement with the Nigerian National Petroleum Company Limited (NNPCL).
Billionaire Femi Otedola, acknowledging the commencement of active production at the Dangote Refinery, foresees the facility contributing $20 billion in revenue, emphasizing its role in Nigeria’s economic transformation. Otedola highlighted the refinery’s advanced carbon capture technologies, which aim to capture over 90% of carbon emissions, aligning with Nigeria’s goal of achieving net-zero emissions by 2060.
The refinery’s commitment to environmental responsibility extends to the recycling of 100% of its water and the efficient utilization of by-products. Notably, the heat generated in the refining process is harnessed to produce 50MW of power, showcasing an innovative approach to energy efficiency.
The Dangote Refinery is equipped with advanced infrastructure, including Single Point Moorings (SPMs) for receiving crude oil and discharging petroleum products. Its logistical capabilities, capable of loading 2,900 trucks per day, underscore its potential for high-volume distribution and supply chain efficiency. The self-sufficient marine facility enhances global connectivity and operational scope.
All products produced by the refinery adhere to Euro V specifications, ensuring compliance with high environmental and quality standards. This commitment to producing cleaner and higher-quality fuels aligns with global environmental goals and market demands, setting the Dangote Refinery on a path to redefine Nigeria’s energy landscape.