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Nigeria’s decades-long fuel dependency ends as Dangote ramps up output

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Nigeria’s decades-long fuel dependency ends as Dangote ramps up output

The latest figures on the Dangote Oil Refinery underscore how quickly the facility is transforming Nigeria’s energy landscape, with production now significantly surpassing domestic demand.

In March 2026, the refinery exported around 434 million litres of Premium Motor Spirit (petrol), out of a total output of 1.49 billion litres, demonstrating its rising influence beyond Nigeria’s borders, per the Punch’s assessment

This development follows within twenty-four hours of reports indicating that the Dangote Refinery has achieved the status of a net exporter of petrol.

According to figures from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), only 1.06 billion litres of total petrol generated during the month was used locally, leaving a significant excess for exports.

The refinery ran at an average capacity utilization of 93.62%, solidifying its position as the dominating player in Nigeria’s downstream sector.

The refinery produced an average of 48.2 million litres of petrol per day, of which 34.2 million litres were delivered to the domestic market.

This growing disparity between production and local consumption is rapidly transforming Nigeria into a major supplier of refined petroleum products in Africa and beyond.

The impact of this increase in refining capacity is clearly seen.

Nigeria became a net exporter of gasoline in March 2026 for the first time in decades, marking a watershed moment for a country that had previously relied on imported fuel while being Africa’s greatest oil producer.

As mentioned earlier, Nigeria became a net exporter of fuel in March, exporting nearly 44,000 barrels per day (bpd) of gasoline, slightly exceeding imports and leaving a net surplus of approximately 3,000 bpd.

“Data from market intelligence firm Kpler showed that gasoline imports into the country dropped sharply to 41,000 barrels per day (b/d) during the month, the lowest level on record,” the refinery revealed via a statement.

“At the same time, crude supply to the Dangote facility rose to about 565,000 b/d, the second-highest intake since the 650,000 b/d refinery commenced operations in late 2023, indicating strong processing rates and increased product yield,” it added.

Due to inefficient state refineries, Nigeria has historically been heavily dependent on fuel imports.

This system depleted foreign exchange and left the country vulnerable to supply shocks from around the world.

Now, that dynamic is shifting.

Source: businessinsider
Via: norvanreports
Tags: Nigeria’s decades-long fuel dependency ends as Dangote ramps up output
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