Nigeria's oil refining just grew 43.94% and Aliko Dangote is the only reason

Nigeria's oil refining sector grew 43.94% in the second quarter, its strongest quarterly expansion on record and close to ten times the pace of the wider economy.

The figure comes from the National Bureau of Statistics, which published its second-quarter gross domestic product report on Monday, Aug. 31. The release covers rebased quarterly estimates for the four quarters of 2025 and the first two of 2026. Rebasing updates the reference year a statistics agency uses to measure the size of an economy, which changes the comparison but gives a more current picture of what the country actually produces.

Nigeria's overall GDP grew 4.43% over the same period. Refining grew at almost ten times that rate.

Aliko Dangote's refinery is the reason. Maintenance and expansion work completed in February lifted its crude distillation capacity from 650,000 barrels a day to 700,000, above the plant's original nameplate figure, and the additional throughput has fed straight into the national accounts.

The scale of what it consumes shows in the crude allocation numbers. Domestic supply to Nigerian refineries reached 97.4% of requirement in the second quarter, with 53.7 million barrels delivered between April and June, according to the Nigerian Upstream Petroleum Regulatory Commission. Dangote alone required 63 million barrels. Producers offered it 68.1 million, and the refinery accepted 52.6 million, roughly 78% of what was put in front of it.

That is a transformation from the first quarter, when just 28.5 million barrels reached all domestic refineries combined despite 61.9 million being allocated and 68.7 million offered.

The refining acceleration has been building. Growth ran at 37.46% in the first quarter of 2025 and 43.94% in the second quarter of 2026, well above the 19.42% and 12.33% recorded in the third and fourth quarters of 2024 under the rebased series, when full-year growth was 14.08%.

The rest of the oil sector moved more modestly. Crude production averaged 1.72 million barrels a day in the second quarter, up from 1.68 million a year earlier and 1.55 million in the first quarter. The oil sector as a whole grew 7.31% year on year, down sharply from 20.46% in the same quarter of 2025 but well ahead of the 2.57% recorded in the first quarter, and expanded 10.91% against the previous quarter. Its share of real GDP rose to 4.16% from 4.05% a year earlier.

The non-oil economy grew 4.31% and still accounts for 95.84% of output.

What the refining growth is producing is exports rather than import substitution alone. Nigeria's seaborne petroleum product exports reached 350,000 barrels a day in the second quarter, against an annual average of 46,000 in 2023, according to the United States Energy Information Administration. Total seaborne shipments averaged 561,000 barrels a day. Europe took about 130,000 barrels a day, up from 40,000 in 2025 and 15,000 in 2023. Other African markets took nearly 120,000, and Asia and Oceania around 110,000.

The refinery's own position is that too much of the domestic market remains closed to it. It told the market last week that imported petrol supplied about 43% of Nigerian demand in July under licences issued by the regulator, and that surplus product has to be exported because it cannot be sold at home.

By Adedotun Elijah Oyeniyi, Billionaires Africa