Nigeria: President Buhari inaugurates a mega-refinery before its commissioning

Nigerian president inaugurates Dangote's mega-refinery, offering the prospect of solving shortages and creating revenue. However, analysts doubt the actual start-up date of the refinery, which could be delayed until the end of 2024.

Share:

Gain full professional access to energynews.pro from 4.90$/month.
Designed for decision-makers, with no long-term commitment.

Over 30,000 articles published since 2021.
150 new market analyses every week to decode global energy trends.

Monthly Digital PRO PASS

Immediate Access
4.90$/month*

No commitment – cancel anytime, activation in 2 minutes.

*Special launch offer: 1st month at the indicated price, then 14.90 $/month, no long-term commitment.

Annual Digital PRO Pass

Full Annual Access
99$/year*

To access all of energynews.pro without any limits

*Introductory annual price for year one, automatically renewed at 149.00 $/year from the second year.

Nigerian President Muhammadu Buhari inaugurated on Monday in Lagos the mega-refinery of billionaire Aliko Dangote, which aims to fully meet the fuel needs of Africa’s most populous country and even to export fuel to the continent.

Nigeria (population 215 million) is one of the largest oil producers in Africa, yet it imports almost all of its fuel due to the failure of its state-owned refineries. And fuel shortages plague the daily life of its inhabitants. Launched in 2013, the more than $18.5 billion industrial project (double the original cost) is “the largest single-train refinery in the world,” according to the Dangote Group, and is expected, at full capacity, to have the largest crude refining capacity on the African continent.

“This complex has the capacity to process 650,000 barrels of crude oil per day, which will enable our country to achieve self-sufficiency in refined products, and even have reserves for export,” President Muhammadu Buhari said Monday from the site, which covers 2,635 hectares of land in the Lekki Free Zone. “This is an important step for our economy and a game changer for the oil sector, not only in Nigeria, but on the whole continent,” he added in front of several African heads of state and Nigerian officials.

Presidents Mohamed Bazoum (Niger), Macky Sall (Senegal), Nana Akufo-Addo (Ghana) and Faure Gnassingbé (Togo) came to the inauguration. Nigeria’s new president, Bola Ahmed Tinubu (the ruling party candidate elected in February), who is due to take office next Monday, was not present. He was represented by his vice president Kashim Shettima. “Our first objective is to ensure that in this year we will be able to fully meet the demands of our country,” said businessman Aliko Dangote at the inauguration.

Submarine pipelines with a length of 1,100 kilometers have been installed to connect the oil-rich Niger Delta to the industrial complex, which in addition to the refinery also has petrochemical and fertilizer plants.

Exporting to Africa

The industrial site was built next to the new Lekki deepwater port, which will be inaugurated in 2022, and which is intended to relieve congestion at the port of Lagos, but also to export some of Dangote’s refined oil to other African countries. According to Mr. Dangote, eventually, “at least 40% of the refinery’s capacity will be available for export, which should result in significant foreign exchange earnings for the country.

During his speech, he assured that the first petroleum products should be put on the Nigerian market “before the end of July, beginning of August this year”. But while the commissioning of the refinery has been repeatedly postponed since 2021, analysts are skeptical of the date. “It is unlikely that the first products will be available in August, it will probably be at the end of the year,” says Tunde Leye, of Nigerian analytics group SBM intelligence.

“It is expected that the refinery will be running at full capacity only at the end of 2024,” he adds, noting that the refinery’s opening was most likely moved up for political reasons. It comes one week before the departure of President Buhari, who is stepping down after two terms marked by a serious deterioration of the economic situation (double-digit inflation, fuel and foreign exchange shortages, rampant poverty, etc.).

According to the analyst, the Dangote mega-refinery should enable Nigeria to put an end to frequent fuel shortages, but also increase the quality of fuel in circulation. He doubts, however, that it will immediately lower the price of fuel in Nigeria “because Mr. Dangote has been forced to borrow massively. “He’ll have to pay back those loans quickly, so he’ll sell the oil at market price,” he says.

Others, such as Amaka Anku of the Eurasia Group, believe that the new refinery may represent an “opportunity for the government to succeed in removing fuel subsidies. For until now, Nigeria has traded its estimated billions of dollars worth of crude oil for imported fuel, which it then subsidizes to keep the market price artificially low, a financial drain.

Analysts say the system encourages corruption and prevents the state from investing heavily in key sectors, such as health and education, while nearly half of Nigerians live in extreme poverty.

Repsol has approved the final investment decision for the Ecoplanta project in Spain. This innovative project, utilizing Enerkem's technology, aims to convert non-recyclable municipal waste into methanol, marking a step towards industrial decarbonization.
The French government unveils its strategy to increase offshore wind capacity, targeting 18 GW by 2035 and 45 GW by 2050, through an ambitious call for tenders covering all maritime fronts.
The continued increase in development costs of upstream oil projects is testing the economic viability of new oil production. A recent study by Rystad Energy reveals an increase in breakeven costs, while still remaining below current oil prices.
Avjet Holding Inc. was fined 200,000 dollars by the Quebec Court for violating the Canadian Environmental Protection Act following a spill of 4,900 liters of petroleum product in January 2023.
TotalEnergies, in partnership with APA Corporation, has confirmed a USD 10.5 billion investment to develop Block 58 off the coast of Suriname. The project aims to exploit the oil resources from the Sapakara and Krabdagu fields, with reserves estimated at over 750 million barrels. The fields, located 150 kilometers offshore, will be developed using a Floating Production Storage and Offloading (FPSO) unit capable of processing up to 220,000 barrels per day.
OPEC is revising its oil demand forecasts for 2024 and 2025 downwards, due to weak economic growth and increased supply from its competitors.
In Uganda, 21 activists were arrested in Kampala for protesting against the EACOP oil project, backed by international players, highlighting the economic and geopolitical tensions surrounding this initiative.
Georgia begins construction of its first oil refinery at Kulevi, with the aim of reducing its dependence on Russian imports and strengthening its energy autonomy.
Masdar and TotalEnergies are collaborating to transform green hydrogen into methanol and sustainable aviation fuel (SAF) in Abu Dhabi, aiming to decarbonize the aviation and shipping sectors.
Zambia will import 200 MW of electricity from South Africa and Zimbabwe to compensate for severe power cuts caused by prolonged drought.
EDF and Generadora Metropolitana launch CEME 1, a 480 MW solar power plant in the Atacama desert, to supply 500,000 homes.
South Sudan is facing a severe economic crisis following the rupture of a pipeline crucial to its oil exports. This situation accentuates inflation and plunges the population into growing insecurity.
European Energy obtains approval for 500 MW of wind and solar projects in Romania, taking a key step towards their realization.
The 2024 UK general election pits the Labour Party and Conservative Party against each other with distinct energy visions focused on renewables and decarbonization strategies.
By 2023, marine renewable energies, dominated by offshore wind power, had generated over 8,300 jobs and doubled their sales, with strong growth in exports.
Ecuador is facing an almost 11% increase in the price of gasoline, a decision likely to provoke further protests in a country where fuel subsidies are a highly sensitive issue.
In May, Russia exceeded OPEC+ production quotas, but is committed to meeting its obligations by September 2025.
French start-up Hopium, which promised the first hydrogen-powered sedan, has announced that it has been placed in receivership, leading to a 40% fall in its share price, but claims to have found the funding to continue its activities and develop its fuel cell technology.
Raven SR takes a crucial step towards renewable hydrogen production by obtaining a permit for its bioenergy project in Richmond, California. This approval marks a significant step forward in the conversion of organic waste into clean fuels and contributes to the reduction of CO2 emissions.