Dangote Refinery: 2024 in Review

The Dangote Refinery, Africa’s largest oil processing facility, has significantly influenced Nigeria’s energy landscape throughout 2024. This article provides a month-by-month overview of the refinery’s key developments and their implications for the nation.

January

• Crude Oil Deliveries: The refinery received its fourth and fifth crude oil shipments, each comprising one million barrels of Bonny Light supplied by the Nigerian National Petroleum Company (NNPC).
• Production Commencement: Diesel and aviation fuel (Jet A1) production commenced, marking the refinery’s operational debut.

February – March

• Operational Scaling: The refinery focused on ramping up production capacity and streamlining operations to meet domestic fuel demands.

April

• Market Integration: Initial batches of diesel and Jet A1 fuel were introduced into the Nigerian market, aiming to reduce dependence on imported fuels.

May

• Capacity Expansion Plans: Aliko Dangote announced intentions to increase production capacity to 500,000 barrels per day by July, indicating a strategic move to enhance output.
• Stock Exchange Listings: Plans were unveiled to list the refinery on both the London Stock Exchange (LSE) and the Nigerian Stock Exchange (NSE), reflecting ambitions for greater financial integration.

June

• Fire Incident: A minor fire occurred at the refinery. The Dangote Group assured the public that the incident had no significant impact on operations.

July

• Offer to NNPC: Amidst monopoly allegations, Aliko Dangote offered to sell the refinery to NNPC, sparking discussions about market dynamics and ownership structures.

August – September

• Petrol Production Delays: Despite earlier projections, petrol production faced delays, with marketers awaiting supplies as delivery dates were extended.

October

• NNPC’s Role Adjustment: NNPC ended its exclusive purchase agreement with the refinery, allowing other marketers to procure petrol directly. This shift led to the cessation of subsidies and a subsequent increase in fuel prices.
• Wealth Milestone: Aliko Dangote’s wealth reportedly doubled to $28 billion, attributed to the operational success of the refinery.

November

• Funding Efforts: Dangote sought substantial funding to secure steady crude supplies, engaging with various financial institutions to ensure consistent refinery operations.
• Gas Supply Agreement: NNPC signed a 10-year deal to supply natural gas to the refinery, ensuring a stable energy source for operations.

December

• First Petrol Export: The refinery achieved a milestone by exporting its first batch of petrol to Cameroon, marking Nigeria’s emergence as a net exporter of petroleum products.

Throughout 2024, the Dangote Refinery has played a pivotal role in transforming Nigeria’s oil sector. Its operations have reduced fuel import dependence, influenced domestic fuel pricing, and positioned Nigeria as a key player in regional energy markets. However, challenges such as production delays and market dynamics continue to shape its journey.