The long-awaited $20-billion Dangote Refinery, owned by Africa’s richest man, Aliko Dangote, finally began operations in January after multiple delays. Located on the outskirts of Lagos, this state-of-the-art refinery is poised to significantly reshape Nigeria’s fuel industry. However, so far, it has only produced diesel and other distillate fuels, with gasoline production yet to kick off.
Initially, Dangote had projected that petrol deliveries would start in May, but the timeline shifted to July, and now there are hints that further delays could be on the cards. In a recent note to clients, IIR indicated that additional postponements are possible, although attempts to contact Dangote for comment were unsuccessful.
Once fully operational, this massive refinery could transform the fuel trade between Europe and Africa, reducing Nigeria’s heavy dependence on imported refined products—a major step toward energy independence.
Meanwhile, in the global oil market, prices held steady following a drop in US fuel inventories, offering some relief after four straight days of falling prices. Brent crude futures gained 29 cents (0.4%) to reach $76.34 per barrel, while US West Texas Intermediate crude futures climbed 43 cents (0.6%) to $72.36 per barrel.
Earlier in the week, oil prices took a sharp dip as weak US jobs data and sluggish economic reports from China—the world’s largest oil importer—stirred concerns about global crude demand. As the world’s biggest oil consumer, the US continues to heavily influence oil market trends.
With global fuel dynamics shifting and the Dangote refinery on the brink of major production milestones, the coming months are set to be crucial for Nigeria’s energy sector and the broader African fuel trade.
Like, comment in the box below, and share on all our social media platforms. For more updates on international news, local news, business, elections, sports, and exciting discussions, tune in to Orange FM 1079
