Nigeria considers crude supply reforms to aid Dangote, other refiners

Nigeria is considering changes to crude allocation and pricing rules to improve ‌feedstock access for its refiners, including Dangote Refinery, the local oil refiners' association said.

Dangote has previously said Nigeria's pricing structure adds $3 to $4 per barrel to feedstock costs for refiners because purchases ​are routed through producers' trading arms. Analysts say the main constraint in domestic ​crude transactions is pricing rather than physical availability.

The move could help ⁠boost operations at Dangote's 650,000 barrel-per-day refinery, Africa's largest, whose output has at ​times been constrained by difficulties securing sufficient crude supplies domestically.
The Crude Oil Refinery-owners Association ​of Nigeria (CORAN) said the proposed changes are expected to be discussed this week during a regulator-led review of Nigeria's domestic crude supply obligation, which requires producers to supply local refiners before exporting.

Under ​one proposal, a producer linked to an IOC's network could deliver crude directly ​to a nearby refinery, with volumes reconciled later at the terminal, said CORAN spokesperson Eche Idoko, ‌adding ⁠this would reduce reliance on trunklines and bring crude closer to refiners.

A second proposal would allow refiners that lift crude directly from production facilities to receive a discount reflecting the freight and handling costs embedded in Brent-linked pricing but not actually incurred ​by them.

"This could be ​a win-win for ⁠both the producers and refiners," said Idoko.

The Nigerian Upstream Regulatory Commission (NUPRC) released data on Monday showing producer compliance with the domestic ​crude supply framework rose to over 90% from less than ​43% in ⁠the previous quarter.

The metric tracks actual deliveries against volumes allocated by the regulator, not refinery demand met. Under the scheme, producers must offer allocated volumes to local refineries, with ⁠sales ​agreed on a 'willing-buyer, willing-seller' basis.

A NUPRC official said ​the ideas "are on the table" largely at the urging of inland refiners, but added that implementation would require ​addressing crude quality differences and pricing adjustments.

By Isaac Anyaogu, Reuters

Dangote's planned $5 billion refinery IPO in Nigeria could be followed by a listing in Africa's richest country

Africa's largest stock exchange is positioning itself to host a secondary listing of Dangote Petroleum Refinery, as interest grows across the continent ahead of what could become one of Africa's biggest initial public offerings.

The Johannesburg Stock Exchange (JSE) confirmed it has been in discussions with the Dangote Group and said the company intends to pursue a listing in Nigeria first before exploring a secondary listing in South Africa.

"They will list in Nigeria first but with strong intent to hopefully bring the listing to South Africa," a JSE spokesperson told Reuters.

The Johannesburg Stock Exchange (JSE) has a total market capitalisation of approximately ZAR 24.9 trillion (USD 1.52 trillion), making it the largest stock exchange in Africa and accounting for about 60% of the continent's total equity market value

The planned listing follows reports that Dangote Group is seeking to raise about $5 billion through an initial public offering of the refinery. Sources familiar with the matter said the company has already made a preliminary filing with Nigeria's securities regulator and is targeting an October debut on the Nigerian Exchange.

Continental investors show strong interest

Investor interest is extending well beyond Nigeria. Kenya is expected to play a significant role in the share sale, with institutional investors, including pension funds, potentially contributing as much as $500 million—about 10% of the targeted fundraising.

Discussions have also taken place with regulators and market participants in Egypt, Ghana and Rwanda to explore ways investors in those countries can participate in the landmark offering, highlighting the refinery's growing appeal as a pan-African investment opportunity.


Built by Africa's richest man, Aliko Dangote, at an estimated cost of $20 billion, the 650,000-barrel-per-day refinery began producing fuel in 2024 and reached full operating capacity earlier this year. The Nigerian National Petroleum Company (NNPC) owns just over 7% of the facility.

A recent private placement valued the refinery at around $40 billion after investors acquired a 6% stake for $2.5 billion. That valuation positions the refinery among Africa's most valuable privately owned industrial assets and sets the stage for what could become one of the continent's largest-ever public listings.

By Adekunle Agbetiloye, Business Insider Africa

Dangote Refinery resumes petrol loading in naira at N1,215/litre

Dangote Petroleum Refinery has resumed gantry loading of Premium Motor Spirit (PMS), also known as petrol, in naira after a week-long suspension, ending uncertainty in the downstream sector over its temporary shift to dollar-denominated sales.

Checks by Vanguard showed that the refinery has fixed its new ex-depot (gantry) price at N1,215 per litre, representing an increase of N140 per litre, or 13.02 per cent, from the previous price of N1,075 per litre.

The increase in the gantry price is directly linked to the sharp rally in global crude oil prices, which has raised the cost of producing refined petroleum products, including petrol, diesel and aviation fuel, heightening concerns over fresh fuel price hikes in Nigeria and other oil-importing countries.

Market data on Wednesday showed that Brent crude, the international benchmark against which Nigeria’s crude is priced, climbed 3.18 per cent to $93.90 per barrel, while West Texas Intermediate (WTI) rose 2.74 per cent to $86.65 per barrel.

The price adjustment also comes at a time when domestic petrol prices have already risen sharply following increases in ex-depot prices by major suppliers, raising fears of another round of increases at filling stations.

The resumption of naira-denominated truck loading is expected to improve product availability after supply disruptions caused by the suspension.

Industry sources confirmed that marketers had been notified of the resumption of gantry operations, with loading set to commence immediately under the revised naira pricing structure.

The development comes barely 24 hours after the 650,000 barrels-per-day refinery resumed coastal loading of petrol at a higher price.

Checks showed that the refinery increased its coastal loading price to $1,161.23 per metric tonne, from $1,044.62 per metric tonne, representing an 11.2 per cent increase.

The refinery’s return to naira pricing for truck loading follows several days of uncertainty in the downstream petroleum market after the suspension forced many independent marketers to source products from private depots.

The disruption tightened supply and pushed ex-depot petrol prices in Lagos to as high as N1,275 per litre, compared with Dangote Refinery’s previous gantry price of N1,075 per litre before sales were suspended.

Before halting product loading, Dangote Refinery attributed the suspension to challenges in securing adequate crude oil supplies under the Federal Government’s naira-for-crude initiative, prompting its temporary switch to dollar-denominated sales.

The refinery’s decision to restore naira transactions is expected to ease supply constraints in the inland market and improve the nationwide distribution of petroleum products.

Already, petrol prices at depots across Nigeria recorded fresh increases on Wednesday, while diesel prices surged sharply in several locations, signaling renewed cost pressures for fuel marketers and transport operators.

Mid-day depot price data for July 22, 2026 showed that the depot price of petrol, rising across major supply hubs including Lagos, Port Harcourt, Warri and Calabar, with some depots raising prices by as much as N87 per litre.

The sharpest increase was recorded at Bulk Strategic Reserve in Lagos, where the ex-depot petrol price jumped by N87 per litre to N1,350 from N1,263.

The increase places the depot among the highest-priced suppliers in the country and could influence retail pump prices if sustained.

Other Lagos depots posted more modest increases. Liquid Bulk, Masters Energy, Matrix and Sigmund all raised petrol prices by between N15 and N17 per litre to N1,280, while TSL did not quote a new price.

Meanwhile, fresh increases in the pump price of petrol, to an average of N1,350 per litre from N1,260 per litre across filling stations in Lagos and its environs have heightened concerns over the rising cost of living, with millions of Nigerians expected to face higher transportation, food and business costs.

Checks by Vanguard showed several retail outlets adjusted their pump prices to between N1,300 per litre and N1,400 per litre following increases in ex-depot prices by depot owners, pushing fuel costs to their highest levels in recent months.

By Udeme Akpan, Vanguard

Dangote begins pricing local fuel sales in dollars, citing crude supply constraints

Nigeria's Dangote Petroleum Refinery has begun pricing fuel products for the local market in U.S. dollars, ​with a company spokesperson on Tuesday citing difficulties securing ‌sufficient crude under the government's naira-for-crude programme and rising global oil prices.

The naira-for-crude programme, launched in October 2024, allowed domestic refiners to purchase ​crude in the local currency and reduced pressure on ​the foreign exchange market.

Africa's largest refinery, with a ⁠capacity of 700,000 barrels per day, has set the ex-depot ​price of petrol at $0.779 per litre, diesel at $1.087 per litre and ​aviation fuel at $0.942 per litre, according to a pricing template circulated to marketers.

Edwin Devakumar, vice president of the Dangote Group, said the refinery had ​been absorbing a currency mismatch by selling products in ​naira while sourcing crude in dollars, but limited crude supply under the naira-for-crude ‌programme ⁠had undermined the arrangement's viability.

Although state-owned oil company NNPC increased Dangote's allocation to seven cargoes in May from about five previously, the refiner has said it requires 13 to 15 cargoes ​a month and ​has been forced ⁠to import the remainder at international prices.

The decision could boost demand for dollars among fuel ​marketers and make domestic fuel prices more sensitive ​to ⁠exchange-rate fluctuations.

The sector regulator, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), did not immediately respond to a request for comment.

Dangote has ⁠become ​a major local petrol supplier, helping ​to reduce the country's dependence on fuel imports, but has struggled to secure ​sufficient volumes in Nigeria.

By Isaac Anyaogu, Reuters

Dangote lowers petrol price in Nigeria even as Trump resumes fighting in Iran

The Dangote Petroleum Refinery lowered its wholesale petrol price on Wednesday, July 8, 2026, despite the resumption of the conflict in the Middle East, which, for the last few months, has brought on a surge in energy prices across Africa.

This price reduction has instigated minor price competition among local fuel suppliers in Nigeria, offering consumers some relief even as domestic diesel costs escalate and global oil markets experience sudden fluctuations.

The massive refinery trimmed its ex-depot petrol price by ₦1, bringing it down to ₦1,075 per litre from the old price of ₦1,076 per litre.

Local market response and diesel hikes

Dangote’s price change has forced other major oil marketers in Lagos to lower their prices slightly to stay competitive.

MRS Oil Nigeria led the way by cutting its depot price by ₦2 to ₦1,074 per litre from the old price of ₦1,076 per litre, making it one of the cheapest options in the city.

While a few suppliers in Lagos and Warri dropped their rates by ₦1 or ₦2, other major companies like NIPCO, Sahara Energy, and Aiteo kept their prices steady.

Right now, most petrol prices at Lagos depots are stable, staying between ₦1,074 and ₦1,075 per litre.

This adjustment in fuel pricing occurs despite the resurgence of hostilities in the Middle East, a conflict anticipated to influence global energy markets.

Trump ends Iran ceasefire, spiking global oil prices

Per recent reports, International oil prices jumped by over 7% in a single day after U.S. President Donald Trump announced on Wednesday, July 8, 2026, that America's temporary ceasefire with Iran is officially "over."

According to global trading platforms like Oilprice.com, this caused immediate worries that global oil supplies might run low, pushing the price of international unrefined petroleum on the global commodities exchange up sharply from its previous $72 to nearly $80 a barrel.

Experts warn that if these global tensions keep driving unrefined petroleum prices upward, the cost of raw oil input will become much higher.

This could eventually force fuel prices back up across Nigeria, potentially ending the local price cuts.

Business Insider Africa

Africa's richest man signs $400 million China equipment deal as refinery expansion targets 1.4 million bpd

 

Africa’s richest man, Aliko Dangote is deepening his bet on Nigeria’s refining future with a Chinese equipment deal aimed at turning his Lagos refinery into one of the world’s largest fuel-processing hubs.

Dangote Group signed a $400 million equipment agreement with China’s Xuzhou Construction Machinery Group, known as XCMG, to support the expansion of the Dangote Petroleum Refinery and other industrial projects.

The deal is expected to help the group double the refinery’s capacity from 650,000 barrels per day to about 1.4 million barrels per day within three years.

If completed, the expansion would place the Lekki-based plant in the same league as Reliance Industries’ Jamnagar refinery in India, currently regarded as the world’s largest single-site refining complex.

For Dangote, the agreement is more than a machinery purchase. It is part of a wider plan to turn Nigeria from a fuel-import dependent economy into a major supplier of refined petroleum products across Africa and beyond.

The refinery has already begun changing trade flows in the region. Reuters reported earlier this month that the facility processed 700,000 barrels per day during a performance test, above its official 650,000 bpd nameplate capacity.

The plant, which started operations in 2024, produces petrol, diesel and jet fuel for the Nigerian market while also exporting refined products to other African countries, Europe, the United States and Saudi Arabia.

That shift is significant for Nigeria, Africa’s largest oil producer, which for decades exported crude oil but relied heavily on imported fuel because of weak domestic refining capacity.

The XCMG deal also highlights China’s growing role in Africa’s industrial expansion. Chinese firms have become major suppliers of infrastructure equipment across the continent, offering large-scale machinery at prices and timelines many African companies consider more competitive than Western alternatives.

The refinery is preparing for a major capital raise ahead of a planned listing. The company had earlier this month sought about $1 billion through a private placement, valuing the refinery at about $39.1 billion. Investor demand had already exceeded $2 billion.

That valuation would make the refinery one of Africa’s most valuable privately built industrial assets.

Dangote has framed the refinery as a long-term industrial bet on Africa, not just Nigeria. The planned expansion would increase fuel supply, deepen petrochemical production and strengthen Nigeria’s position in regional energy markets.

However, the scale of the project also comes with risks. The first phase of the refinery took more than a decade to complete and faced delays, funding pressure and crude supply challenges.

The second phase will test whether Dangote can expand faster while maintaining stable crude supply, regulatory support and export demand.

Still, if the expansion succeeds, it could reshape Africa’s fuel market and give Nigeria a rare advantage in a sector where it has long underperformed despite being one of the continent’s biggest crude oil producers.

By Ayodeji Adegboyega, Business Insider Africa

Nigerian SEC orders halt to marketing for Dangote refinery IPO

Nigeria’s Securities and Exchange Commission on Tuesday ordered an immediate halt to the marketing ​of a purported initial public offering by Dangote ‌Petroleum Refinery & Petrochemicals FZE, saying no application has been filed or approved.

The regulator said it had identified advertisements, digital campaigns and ​investment solicitations promoting shares in the refinery across ​social media and other channels. Some registered capital ⁠market operators were involved in seeking advance subscriptions, it ​added.

“No application for the registration of an IPO or ​public offer of shares of the refinery has been filed with or approved by the Commission,” the SEC said.

Dangote Petroleum Refinery, in ​a statement on X, reiterated its March position that ​it has not authorised any IPO-related marketing, described recent online reports ‌and ⁠solicitations as unauthorised and inaccurate, and said any potential offering would only be communicated through formal regulatory disclosures.

The SEC warned that the promotions — including requests to pre-fund accounts ​or secure ​allocations — could mislead ⁠investors, distort market expectations and undermine market integrity.

It directed operators to immediately stop related ​promotional activities, remove materials within 24 hours ​and ⁠refund any funds already collected. It warned of sanctions for non-compliance.

The refinery, owned by billionaire Aliko Dangote, began operations ⁠in 2024 ​and is expected to transform ​Nigeria’s fuel market. Its planned IPO scheduled for later this year had ​drawn widespread interest.

By Isaac Anyaogu, Reuters

Africa’s largest refinery rejects claims its fuel is routed through Togo and re-imported into Nigeria

Dangote Petroleum Refinery has dismissed allegations that its petroleum products are exported to Lomé, Togo, and subsequently re-imported into Nigeria, describing the claims as baseless, unsupported by trade economics and inconsistent with its commercial interests.

The company issued the response on Tuesday in a statement titled “Response to Unsubstantiated Claims and Tissue of Lies”, saying it was compelled to address what it described as false narratives despite its longstanding policy of not responding to unfounded allegations.

“As a matter of policy, we do not respond to baseless and unsubstantiated claims, However, we have decided to clear the air on these ill-motivated web of falsehoods for posterity,” the refinery said.

The statement comes at a time of serious public debate over petrol prices in Nigeria following recent volatility in global oil markets and growing scrutiny of pricing decisions by major fuel suppliers.


Refinery says claims defy commercial logic

Dangote Refinery said the allegation that its products are shipped to Togo and later brought back into Nigeria is unsupported by available trade flows and makes little economic sense.

According to the company, facilitating imports that would compete directly with its own products would undermine its objective of maintaining and strengthening its position in the Nigerian market.

“A key objective of Dangote Refinery is to maintain and strengthen its position as a leading supplier of petroleum products to the Nigerian market,” the company said.

“Facilitating imports that compete directly with our own production would be inconsistent with this objective.”

The refinery added that its sales contracts and tender conditions explicitly prohibit the resale or re-importation of products into Nigeria.

It further argued that the economics of such a trade route are unfavourable.

According to the company, transporting petroleum products from its refinery to Lomé and then back into Nigeria would add between $82 and $90 per metric tonne (about N126,000 to N138,000 per metric tonne) in logistics costs.

Those additional expenses, the company said, would significantly reduce margins and eliminate any potential commercial advantage.

“Simply put, there is no evident commercial incentive for a producer to incur additional shipping, storage, financing and handling costs only for the product to return and compete in its largest and closest market,” the statement said.


Traceability and compliance controls

Dangote Refinery said it maintains detailed records covering product lifting locations, nominated vessels, counterparties and destination declarations where required.

The company said any suggestion that it knowingly facilitates re-importation is inconsistent with both the contractual restrictions imposed on buyers and its compliance procedures.The refinery also argued that the allegations contradict its publicly stated position on reducing Nigeria’s dependence on imported petroleum products.

According to the company, increased fuel imports weaken local refining, place pressure on foreign exchange reserves and undermine domestic industrial development.

“It would therefore be inconsistent with both the refinery’s commercial interests and its publicly stated position to support or encourage practices that increase imports into Nigeria,” it said.


Why the debate matters

The controversy comes as the Dangote Refinery assumes a larger role in African energy markets.

With a refining capacity of 650,000 barrels per day, the facility is the largest refinery in Africa and the world’s largest single-train refinery.

Since commencing fuel production, the refinery has expanded supplies to the Nigerian market while increasing exports of refined products across West Africa.

The refinery has also become central to Nigeria’s efforts to reduce its long-standing dependence on imported fuel, a shift policymakers say could save billions of dollars in foreign exchange annually.

Its growing influence has made pricing decisions at the refinery closely watched not only in Nigeria but across several African countries that import petroleum products.

The latest debate comes after crude oil prices surged during tensions involving Iran, Israel and the United States, raising concerns about possible disruptions to global energy supplies through the Strait of Hormuz.

Although international oil prices have eased following a ceasefire between Iran and Israel, fuel prices in Nigeria remain significantly higher than levels seen before the conflict.

The development has triggered fresh discussions among consumers and industry stakeholders about how quickly lower global oil prices should translate into lower domestic fuel prices.

The company maintains that there is neither a strategic nor commercial rationale for exporting products to neighbouring countries only for them to be re-imported into Nigeria.

“The allegation is not supported by the economics of the trade, the refinery’s contractual arrangements, its product traceability and compliance controls, or its long-standing position on strengthening domestic refining and eliminating dependence on imports,” the company said.

By Ayodeji Adegboyega, Business Insider Africa

Dangote refinery raises throughput above nameplate capacity to 700,000bpd ahead of IPO

Nigeria's Dangote Petroleum Refinery has increased crude processing capacity to 700,000 barrels per day (bpd), exceeding its official nameplate capacity of 650,000 bpd, according to company executives.

The refinery, Africa’s largest, said on Thursday (June 4) the achievement was confirmed during a performance test conducted by its process licensors, marking a milestone for the facility, which is also the world's largest single-train refinery.

Anthony Chiejina, head of corporate communications at Dangote Petroleum Refinery, said in a statement cied by state news agency NAN that the higher throughput demonstrated the strength of the refinery's engineering design and operational efficiency.

Speaking on the development, Devakumar Edwin, vice president for oil and gas at parent company Dangote Industries, confirmed plans to expand processing capacity to 1.4mn bpd within the next 30 months. This is part of a broader $40bn industrial expansion by the parent company spanning refining, fertiliser production and associated industries.

"The objective is to position the refinery among the largest refining complexes in the world," Edwin said is quoted as saying, adding that the expansion would enhance Nigeria's energy security, reduce dependence on imported fuels and strengthen the country’s role as an exporter of refined petroleum products. The plant this spring sharply increased exports across Africa after reaching full capacity, including cargoes to Tanzania, Ghana, Cameroon and Togo.

Owned by Nigerian businessman Aliko Dangote, the refinery commenced fuel production in 2024 and has steadily increased output of petrol, diesel, jet fuel and other petroleum products. The facility currently supplies the domestic market and exports refined products across Africa and to international destinations including the United Kingdom, France, Spain, Italy and the Netherlands.

Edwin said the Nigeria refinery has also supplied gasoline cargoes to the United States and jet fuel to Saudi Arabia, helping establish its presence in international fuel markets.

According to Dangote, the rising production has also attracted growing interest from international crude suppliers and commodity traders, with feedstock sourced from both domestic and foreign producers.

The refinery's petrochemicals operations are also expected to support downstream manufacturing through supplies of liquefied petroleum gas (LPG), polypropylene and other industrial feedstocks. Future plans include production of linear alkylbenzene (LAB), a key raw material used in detergent manufacturing.

Dangote Petroleum Refinery and Petrochemicals FZE, owner of the refinery in Lagos, plans to list shares in the third quarter of 2026 at a valuation of between $40bn and $50bn, with the company proposing to sell a 5%-10% stake in the business. The company is considering a multi-exchange structure that would include the Nigerian Exchange (NGX) and other African bourses.

Meanwhile, founder Aliko Dangote has said he is considering Kenya as the preferred location for a proposed 650,000 bpd refinery in East Africa, shifting focus away from an earlier plan centred on Tanzania.

He said the potential East African refinery would process crude from Uganda and other international suppliers, reducing regional dependence on imported refined petroleum products, adding that crude could be delivered by sea rather than relying solely on the planned East African Crude Oil Pipeline (EACOP) linking Ugandan oilfields to Tanzania’s port of Tanga.

That planned 1,443-km export pipeline being developed by a consortium including TotalEnergies (EPA: TTE), China National Offshore Oil Corporation (CNOOC) and the governments of Uganda and Tanzania. It is designed to transport crude from Uganda’s Lake Albert oilfields to Tanzania’s port of Tanga for export.

bne INTELLINEWS

Related story: Video - East Africa competes for multibillion-dollar Dangote refinery investment

Video - East Africa competes for multibillion-dollar Dangote refinery investment

Tanzanian President Samia Suluhu Hassan has held high-level investment talks with Nigerian billionaire Aliko Dangote as competition intensifies over the location of a proposed multi-billion-dollar oil refinery in East Africa. The debate centers on whether the refinery will be built in Tanga, Tanzania, or in Kenya’s port city of Mombasa. Analysts say the project could strengthen regional energy security by reducing East Africa’s dependence on imported fuel from the Middle East.

CGTN Africa

Related story: Dangote plans major Atlantic port project in southwest Nigeria to support oil, fertilizer exports

Dangote plans major Atlantic port project in southwest Nigeria to support oil, fertilizer exports

 

Dangote Industries Limited has begun preliminary work on a proposed deep-sea port project at the Olokola Free Trade Zone in southwestern Nigeria, as the conglomerate expands further into logistics and maritime infrastructure to support its other operations and export ambitions, The Punch reports.

The project, which spans more than 10,000 hectares across parts of Ogun and Ondo states, forms part of the group’s Vision 2030 strategy aimed at strengthening its position in manufacturing, logistics and export-led industrialisation.

The proposed port would be located in Ogun Waterside Local Government Area of Ogun State, extending towards Ilaje Local Government Area of Ondo State along the Atlantic coastline. Dangote Industries said the facility is intended to serve as a logistics and industrial hub for imports, exports and regional trade.

Dangote Industries, the parent company of the 650,000 barrels per day (bpd) Dangote Petroleum Refinery, as well as fertiliser and cement businesses, said the port would support exports of fertilisers, petrochemicals and refined petroleum products, while also facilitating imports of heavy industrial equipment and potentially future liquefied natural gas exports.

The Lagos refinery, which has been expanding exports of petrol, diesel and aviation fuel across African markets, is projected to double its output to 1.4mn bpd within 30 months.

“The Olokola Port project is a major step in opening up Nigeria’s economic potential, strengthening trade, reducing pressure on existing ports, and supporting industrial growth,” said MD for Infrastructure and Logistics Capt Jamil Abubakar, as quoted by The Punch.

“With its strategic location, Olokola would serve as a key gateway for exports and imports, boosting Nigeria’s competitiveness in regional and global trade,” he added.

Abubakar said the proposed facility had been designed as part of an integrated industrial and logistics ecosystem intended to strengthen regional commerce and supply chains across Africa. He added that Dangote Industries would maintain engagement with host communities throughout implementation.

Apart from creating jobs and attracting foreign direct investment and, the company said it would support Nigeria’s export diversification strategy and strengthen participation in intra-African trade under the African Continental Free Trade Area (AfCFTA).

Nigerian billionaire Aliko Dangote, president of the conglomerate, said last week he is considering Kenya as the preferred location for a proposed 650,000 bpd refinery in East Africa, shifting focus away from an earlier plan centred on Tanzania.

Meanwhile, he is targeting a valuation of around $50bn for the Dangote Petroleum Refinery ahead of a planned stock market listing later in 2026, which could sell up to a 10% stake through the Nigerian Exchange (NGX).

Intellinews

Dangote refinery sues to halt Nigeria petrol imports amid market battle

Dangote Petroleum Refinery, the $20bn refining complex owned by Nigerian billionaire Aliko Dangote, has intensified its battle with fuel importers and downstream marketers after filing a fresh lawsuit seeking to halt petrol imports into Nigeria, reopening a fierce debate over competition and supply security in Africa’s largest fuel market.

Court documents reviewed by Reuters showed the Lekki-based refinery asked the Federal High Court in Lagos to void import licences issued by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to several marketers, arguing the approvals violated the Petroleum Industry Act (PIA) and an earlier court order to maintain the status quo.

The suit targets import permits granted to NIPCO Plc (NGX:NIPCO), AA Rano, Matrix Energy, Shafa, Pinnacle Oil and Bono Energy, which were collectively authorised to import about 720,000 metric tonnes of Premium Motor Spirit (PMS), as petrol is locally known, equivalent to roughly 960mn litres of petrol.

Under the allocations, NIPCO is expected to import 120,000 metric tonnes, AA Rano 150,000 metric tonnes, Matrix Energy 150,000 metric tonnes, Shafa 120,000 metric tonnes, Pinnacle Oil 120,000 metric tonnes and Bono Energy 60,000 metric tonnes.

An NMDPRA official quoted anonymously said the licences were approved to complement local supply and prevent shortages, maintaining the regulator’s long-standing position that imports remain necessary until domestic refining can consistently meet national demand.

The 650,000 barrels-per-day (bpd) Dangote refinery, however, argued that continued imports undermine its operations and contradict provisions of the PIA, which it says only permit imports in cases of demonstrated supply shortfall.

The case marks a renewed escalation in tensions between the refinery and downstream marketers after Dangote previously withdrew a similar lawsuit against the Nigerian National Petroleum Company Limited (NNPCL), the only entity licensed to operate in the country's petroleum industry.

President Bola Tinubu last week publicly defended the government’s support for the refinery during the Africa CEO Forum in Rwanda, confirming he approved the naira-for-crude arrangement designed to improve domestic crude supply and reduce pressure on Nigeria’s foreign exchange reserves.

Aliko Dangote recently disclosed that the refinery had processed crude at 661,000 bpd, exceeding its projected installed capacity, while outlining plans to expand capacity to 1.4mn bpd within the next 30 months. It currently sources about 56% of its crude feedstock from Nigeria, with the remainder imported from countries including Angola, Libya and the United States.

The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) strongly opposed the lawsuit, warning that attempts to invalidate import licences could destabilise the downstream market and threaten billions of naira invested in storage depots, logistics and fuel distribution infrastructure.

“The import licences at the centre of this lawsuit are not administrative courtesies. They are the legal instruments through which Nigeria’s fuel supply chain functions,” DAPPMAN said in a statement, cited by local outlet The Punch.

The association argued that the PIA gives the regulator discretion to issue import licences where necessary to ensure supply security and warned against allowing “a private refinery’s commercial interests” to override the regulator’s statutory mandate.

Industry participants have increasingly warned that a complete halt to imports could create market concentration risks, while supporters of the refinery argue that continued imports discourage domestic refining investment and undermine efforts to achieve energy self-sufficiency.

Nigeria has historically relied heavily on imported petrol despite being Africa’s largest crude producer, with weak state-owned refining capacity forcing the country to spend billions of dollars annually on fuel imports before Dangote refinery began large-scale operations.

Dangote Petroleum Refinery & Petrochemicals plans to launch an initial public offering in mid-2026 targeting a valuation of $40bn-$50bn, with between 5% and 10% of the refinery business expected to be offered to investors.

The listing is expected to span multiple African exchanges, including the Nigerian Exchange (NGX), and would rank among the largest capital market transactions in Africa if completed.

Intelli News

Related story: Nigeria fuel demand rises as Dangote drives near-full refining capacity

Nigeria fuel demand rises as Dangote drives near-full refining capacity

Nigeria’s petrol consumption rose in April, while domestic refining surged to near full capacity, led by strong output from the Dangote refinery, data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) showed on Wednesday.

Average daily petrol consumption rose to 51.1 million litres, slightly above the 50 million litres benchmark levels, while diesel demand climbed to 17.3 million litres a day.

Refining utilisation averaged 99.1% in April, with Dangote operating at full capacity for most of the month.

Product output averaged 53.6 million litres of petrol, 23.6 million litres of diesel and 22.9 million litres of aviation fuel a day, with some volumes exported.

Fuel stock cover was uneven, with petrol at 18 days, compared with 39 days for diesel and 70 days for aviation fuel.

Retail petrol prices averaged 1,271 naira/litre ($0.9287/litre) in coastal Lagos and 1,371 naira in northern Maiduguri, tracking Brent crude at $120.55 a barrel.

All four state-owned NNPC Ltd refineries, with combined capacity of 445k/d, remain shut.

Reuters

Jet fuel crisis: a boon for Nigeria's Dangote, but not for local airlines

Nigeria's giant Dangote refinery is benefiting from record margins for producing jet fuel that it is mostly selling abroad, while the domestic airlines it also supplies have threatened ​to stop flying because of the surge in fuel prices.

The refinery, the largest on the continent, was built to turn Africa's biggest oil producing ‌country into a net exporter of refined products, end Nigeria's reliance on fuel imports, and shield its economy from global energy shocks.

It became fully operational at the start of this year and is producing at its maximum capacity of 650,000 barrels per day.

That has improved local fuel availability but domestic fuel prices are still among the highest in Africa as Nigeria's market is fully deregulated, meaning fuel prices are ​not subsidised by the government as they are in most African countries.

The issue is further complicated by the state oil company's long-standing debt repayment agreements that ​mean Dangote has to import most of its crude oil, making it easier to balance its books if it sells abroad.

CLASH WITH ⁠THE NEEDS OF THE AVIATION INDUSTRY

Industry body the Airline Operators of Nigeria said prices, taking logistics and storage costs into account, have climbed to 3,300 naira ($2.44) per litre, ​nearly triple the level in February before the start of the Iran war.

Nigeria's energy regulator said Dangote was selling jet fuel at 1,879 naira ($1.39) per litre, little changed from imported fuel ​prices of about 1,900 naira ($1.41) per litre delivered to Lagos earlier this month.

The Middle Eastern conflict has led to unprecedented energy disruption and the risk of jet fuel shortages is pressing. Airlines around the world have hiked prices, added fuel surcharges and grounded planes.

Nigerian airlines last week threatened to halt all flights, prompting the government on Thursday to approve measures including some relief on debts owed by local airlines ​and ordering talks to try to agree lower prices.

DANGOTE'S MARGINS COULD BE EVEN BETTER?

Dangote, meanwhile, as a new, highly efficient refinery, has been able to take advantage of record margins ​for producing jet fuel from crude.

Its profits could be even higher if it could rely on Nigerian crude and avoid almost all freight costs.

State oil firm, the Nigerian National Petroleum Company Limited’s ‌joint‑venture crude, ⁠however, is tied to oil-backed loans and pre‑export deals.

That means much of Nigeria's roughly 1.5 million barrels per day of production goes to paying debts to international oil majors, banks and traders. The NNPC does not disclose its obligations, but analysts estimate they amount to about 400,000 bpd.

Dangote Group Vice President Davekumar Edwin said Dangote imported most of its crude from the U.S., as well as some from other African producers and Brazil. He did not give precise figures.

He said the bulk of the 24 million litres of jet ​fuel it produces daily was shipped to Europe, ​although he also said the refinery ⁠largely supplied the needs of Nigerian airlines, which the aviation industry estimates at about 2.1 million litres per day.


EUROPEAN BUYERS ARE WILLING TO PAY UP

As European buyers are willing to pay a premium ahead of the peak demand summer travel season, European imports from ​Nigeria have averaged 78,000 to 96,000 barrels per day in April so far, data from Kpler and LSEG showed, the highest ​on record.

Alan Gelder, senior ⁠vice president for refining, chemicals and oil markets at Wood Mackenzie, said European refiners had earned about $15 per barrel.

He estimated Dangote's margins at more than double that as a result of access to Nigerian crude and the plant's scale and sophistication. Edwin did not disclose figures, but the profits from producing jet fuel hit a record on international markets in March.

Dangote, as ⁠a private refinery, ​prices its products in response to global markets, Gelder said, and that building a big refinery "does not ​automatically mean fuel prices fall".

Dangote plans to list shares in the coming months and is expanding the complex to 1.4 million bpd capacity, which could make it the world's largest refinery by the end of the ​decade.

By Macdonald Dzirutwe, Reuters

Dangote plans world’s largest refinery expansion, targeting 95,000 jobs

 

Africa’s largest industrial project is set to scale further, with Aliko Dangote announcing plans to expand the Dangote Refinery to a production capacity of 1.4 million barrels per day, a move expected to create up to 95,000 skilled jobs at peak construction.

Dangote made the disclosure in Lagos during his induction as an Honorary Fellow of the Nigerian Academy of Engineering, framing the expansion as a significant step in Nigeria’s industrialisation drive.

“This award is particularly meaningful because it recognises what we are doing in the industry,” he said, adding that the project would employ “about 95,000 skilled workers on site” at its peak.

Once completed, the upgraded facility is projected to surpass India’s Jamnagar Refinery to become the world’s largest refinery by capacity. The development is expected to strengthen Nigeria’s domestic refining capability, reduce reliance on imported fuel, and ease pressure on foreign exchange reserves.

Dangote said the expansion would rely heavily on local expertise, creating opportunities for engineers, technicians, and artisans, while also driving technology transfer and supporting the broader oil and gas value chain.

“The scale of this expansion reflects our confidence in Nigerian capacity and our belief that Africa can build world-class infrastructure,” he said.

Call for deeper Dangote investments

Industry observers note that the refinery has already been positioned as a cornerstone of Nigeria’s efforts to become a net exporter of refined petroleum products, with potential spillover effects across manufacturing and logistics.

In a separate development, Abdullahi Sule called on the Dangote Group to deepen its investments in Nasarawa State, citing its untapped mineral resources.

Speaking at the Nasarawa Trade Fair, Governor Sule, represented by a state official, said existing collaboration with the conglomerate could be expanded to support industrial growth.

He also referenced the group’s long-term investment ambitions, including a $100 billion target under its Vision 2030 strategy, suggesting such commitments could bolster small businesses and stimulate broader economic activity.

While the refinery expansion signals growing investor confidence in Nigeria’s industrial base, analysts say its long-term impact will depend on regulatory stability, infrastructure support, and global oil market dynamics.

By Segun Adeyemi, Business Insider Africa

Related story: Africa’s richest man sees his net worth surge by $3.21 billion

Africa’s richest man sees his net worth surge by $3.21 billion

 

Africa’s richest man, Aliko Dangote, is emerging as one of Africa's top wealth creators in 2026, with his riches skyrocketing amid significant changes in Nigeria's petroleum sector.

According to the Bloomberg Billionaires Index, Dangote is Africa's third best-performing billionaire this year, with a net worth of $33.2 billion and a year-to-date gain of $3.21 billion.

He trails Natie Kirsh, who has added $5.50 billion despite having a lower net worth of $15.2 billion, and fellow Nigerian Abdulsamad Rabiu, whose wealth has increased by $4.64 billion to $14.8 billion.

Dangote began the year with a net worth of $30.4 billion, making him the 80th richest person in the world at the time.

A month later, the Nigerian billionaire, per the Bloomberg index, saw his net worth rise by $2.79 billion to $32.8 billion, making him the 73rd richest person globally, the same spot he currently occupies.

Dangote's recent increase follows a significant milestone in Nigeria's oil sector.

For the first time in decades, the country has become a net fuel exporter, thanks largely to output from the Dangote Petroleum Refinery.

According to data from energy analytics firm Kpler, Nigeria exported approximately 44,000 barrels of petrol per day in March 2026, slightly exceeding imports and leaving a surplus.

The refinery's rising presence is already felt across the continent.

In March alone, it sent 12 cargoes of refined petroleum products to Côte d'Ivoire, Cameroon, Tanzania, Ghana, and Togo, totaling 456,000 tons.

This signifies Nigeria's return to regional fuel markets as a supplier rather than a buyer.

However, issues remain as Nigeria imported an estimated 61.7 million barrels of crude oil from the United States between January 2024 and January 2026, totaling approximately $4.9 billions, most of which were purchased by the country’s only working oil refinery.

Beyond fuel, Dangote is diversifying the products he is offering from his refinery to include other petrochemicals.

A recent report showed that the Dangote Refinery is looking into using Honeywell International Inc. technology to produce 400,000 metric tons of linear alkylbenzene, a major ingredient in detergent manufacturing, in a $11.5 billion venture.

Taken together, these developments demonstrate how Dangote's industrial ventures are not only altering Nigeria's energy scene but also fueling his quick rise in global wealth rankings.

By Chinedu Okafor, Business Insider Africa

Dangote taps Honeywell to expand plastics and detergent petrochems

Nigeria’s Dangote oil refinery has reached a deal with Honeywell to use the U.S. industrial group’s technology to build up production of petrochemicals for plastics and detergents, the companies said, expanding the $20 billion complex’s footprint beyond fuels and making Nigeria less dependent on imports.

The move is part of Dangote’s wider plan to build an integrated petrochemicals business around Africa’s largest refinery, producing industrial and consumer inputs locally while positioning Nigeria as a regional manufacturing hub.

Dangote said on Monday it will use Honeywell UOP’s Oleflex technology to produce an additional 750,000 metric tons a year of propylene at its Lekki refinery, supporting plastics used in packaging, consumer goods and industrial applications.

The refinery will also deploy Honeywell technologies to produce 400,000 tons a year of linear alkylbenzene (LAB), a key ingredient in detergents and cleaning products. Once fully operational, Dangote says its LAB plant is expected to rank among the world’s largest.

Financial details of the deal were not disclosed.

Dangote’s $2 billion petrochemical plant at the Lekki complex near Lagos, situated close to the main refinery and with a 830,000 metric tonne capacity, also began producing polypropylene in March 2025, in 25kg bags for the local market.

Dangote and Honeywell have worked together for years on the main refinery, which currently has capacity of 650,000 barrels per day. Using Honeywell technology, Dangote plans to lift capacity to 1.4 million bpd by 2028, a move that Dangote says would make it the world’s biggest refinery by throughput.

By Isaac Anyaogu, Reuters

Nigeria exports 55.39 million barrels as Dangote refinery faces crude supply shortfall

Nigeria exported 55.39 million barrels of crude oil in the first two months of 2026, highlighting a widening imbalance between rising export flows and persistent domestic supply shortages affecting its largest refinery.

Data from the Central Bank of Nigeria showed that exports totalled 31.31 million barrels in January and 24.08 million barrels in February.

Average daily production stood at 1.46 million barrels in January and 1.31 million barrels in February, while export levels averaged 1.01 million barrels per day and 0.86 million barrels per day, respectively.

Overall production for the two months reached 81.94 million barrels, leaving 26.55 million barrels for local refining. The figures underscore ongoing tensions between export commitments and domestic industrial demand, particularly from the 650,000-barrel-per-day Dangote Petroleum Refinery.

The $20bn Lekki-based refinery has repeatedly reported insufficient crude supply from domestic producers, forcing it to supplement feedstock with imports from international markets despite Nigeria’s status as Africa’s largest oil producer.

The imbalance persists under the naira-for-crude arrangement, which is designed to prioritise local refining but continues to face implementation challenges. Industry stakeholders say a significant portion of crude output is still exported rather than directed to domestic refineries.

Between October 2025 and mid-March 2026, the Dangote refinery reportedly faced a crude shortfall of about 79.53 million barrels. Internal data indicate that the facility requires approximately 19.77 million barrels per month to operate at full capacity, but received far lower volumes during the period.

Monthly deliveries included 4.55 million barrels in October, 6.45 million in November, 4.30 million in December, 5.65 million in January, and 4.66 million in February, with 3.6 million barrels supplied in the first half of March. This translates to a supply performance of about 26.9 per cent against the estimated requirements of 108.74 million barrels.

“The refinery continues to operate below optimal capacity due to inadequate domestic crude supply, despite clear provisions under the Petroleum Industry Act prioritising local demand,” a senior refinery source told Punch.

Fuel pricing has also reflected the strain on supply chains. Petrol prices rose above N1,300 per litre (approximately $0.87 using an estimated exchange rate of 1,500 naira per US dollar), before easing to around N1,250 per litre (about $0.83).

The Dangote refinery has attributed the price volatility to insufficient domestic crude allocations. In a statement, it said it had been receiving “about five cargoes a month from NNPC, far below the 13 cargoes required,” adding that shipments were priced at international market rates despite being paid partly in naira.

It further stated that reliance on imported crude had increased costs because local upstream producers were not meeting their supply obligations under national regulations.


NNPC response highlights supply constraints and pricing pressures

The Nigerian National Petroleum Company (NNPC) Limited, however, said it was working to bridge supply gaps through international sourcing.

A senior official noted, “We are leveraging our global crude trading network to source third-party crude at competitive international market prices,” adding that the company remained committed to supporting domestic refining.

The official also pointed to historical crude sales commitments as a factor affecting short-term availability, though insisted that alternative sourcing strategies were being pursued.

Separately, Aliko Dangote confirmed that the refinery received 10 cargoes in March, up from an average of 5 cargoes per month since late 2024. However, this still fell short of operational requirements.

Industry groups, including the Crude Oil Refiners Association of Nigeria, have called for increased allocation to domestic refineries, arguing that a stable feedstock supply is essential for profitability and energy security.

As Nigeria balances export earnings with domestic industrialisation goals, the widening gap between crude production, exports, and local refining demand continues to draw scrutiny from stakeholders across the energy value chain.

By Segun Adeyemi, Business Insider Africa

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.

By Chinedu Okafor, Business Insider Africa

Nigeria becomes net petrol exporter for first time in decades as Dangote refinery scales up

Nigeria has become a net exporter of petrol for the first time in decades, marking a turning point for a country long defined by its dependence on imported fuel despite being Africa’s largest oil producer.

The shift, recorded in March 2026, was driven by rising output from the Dangote Petroleum Refinery, which is rapidly transforming the country’s downstream oil market.

Data from energy intelligence firm Kpler shows Nigeria exported about 44,000 barrels per day (bpd) of petrol during the month, slightly exceeding imports and leaving a net surplus of roughly 3,000 bpd.

It is a symbolic and economic milestone. For years, Nigeria relied heavily on fuel imports due to underperforming state refineries, a system that drained foreign exchange and exposed the economy to global supply shocks.

That dynamic is now changing.

Crude supply to the 650,000 bpd Dangote refinery rose to about 565,000 bpd in March, one of its highest levels since operations began in late 2023. At the same time, petrol imports fell sharply to around 41,000 bpd, the lowest level ever recorded.

The figures point to a rapid replacement of imports with domestic refining.

Beyond reducing import dependence, the refinery is also expanding Nigeria’s reach into new markets. In March, it shipped a 317,000-barrel cargo of petrol to Mozambique, its first export to East Africa, with another cargo expected in April.

The move signals a broader shift in African fuel trade flows. East African countries, traditionally reliant on suppliers from the Middle East, are increasingly diversifying sources amid persistent global supply disruptions and shipping risks.

For Nigeria, the implications are significant.

Exporting petrol could help boost foreign exchange earnings while reducing demand for dollars previously used for imports, a key factor behind pressure on the naira in recent years. It also strengthens energy security by anchoring supply within the country.

At a global level, Nigeria’s entry into the export market could intensify competition, particularly in Europe where petrol supply is already ample.

The development reflects a deeper structural change: Nigeria is beginning to move from exporting crude and importing refined products to processing more of its oil domestically, a long-standing policy goal that has repeatedly failed in the past.

The Dangote refinery sits at the centre of that transition.

Its scale and rising utilisation are already reshaping expectations for the sector, with analysts pointing to potential gains in industrial activity, trade balance, and fiscal stability if output remains strong.

At the same time, the refinery’s owner, Aliko Dangote, is pursuing plans to list the business across multiple African stock exchanges in what could become the continent’s first pan-African initial public offering.

The proposed listing aims to attract investors across different countries and deepen cross-border capital flows, though analysts say execution will depend on regulatory alignment and currency stability.

For now, the export milestone offers the clearest signal yet that Nigeria’s long-troubled downstream oil sector may be entering a new phase, one defined less by scarcity and imports, and more by domestic capacity and regional influence.

By Ayodeji Adegboyega, Business Insider Africa

Related story: Dangote refinery hikes exports to ease Africa supply crunch