Dangote refinery ramping up output as Nigeria prepares phased 15% fuel import duty

Nigeria’s 650,000bpd Dangote petroleum refinery said on November 1 it is ramping up gasoline and diesel output to meet domestic demand, after the government approved a 15% import duty on refined petroleum products.

The measure aims to further reduce Nigeria’s reliance on foreign fuel supplies and encourage domestic processing, after decades in which the country – despite traditionally being Africa’s top oil producer – imported most of its petrol and diesel.

Federal Inland Revenue Service (FIRS) head Zacch Adedeji said the duty would be introduced gradually to avoid disrupting domestic supply, noting that authorities are sequencing fuel-market reforms alongside the ongoing ramp-up in local refining.

Nigeria spends around $2bn a year on refined fuel imports, according to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA ). Reducing these imports is seen as key to easing pressure on foreign-exchange reserves and stabilising consumer fuel pricing.

Ramp-up timelines at the Dangote refinery – owned by Nigerian billionaire Aliko Dangote, the continent’s richest person and commissioned in 2024 – will depend on feedstock supply arrangements, unit performance and downstream distribution.

Meanwhile, as bne intelliNews reported last week, the Nigerian National Petroleum Company Limited (NNPCL) said it has begun a fresh review of the country’s three state-owned refineries, signalling yet another attempt to revive facilities that have remained largely idle despite repeated rehabilitation efforts.

Group CEO Bayo Ojulari disclosed the development on his X account, noting that the company is assessing several options to restore reliable refining capacity. NNPCL could seek technical equity partners to “high-grade or repurpose” the plants, he said, in what would represent a shift from previous government-led overhaul programmes.

The approach would involve external operators taking equity positions in the Port Harcourt, Warri and Kaduna refineries, which operated at minimal capacity for more than a decade,  alongside responsibility for operational performance, maintenance and technology upgrades.

“We are filled with determination! We are looking ahead with optimism to ensure our refineries operate effectively. We are dedicating significant time to a detailed review and are eager to implement our insights,” Ojulari wrote on X.

“What fuels our drive is the understanding that the prosperity of the Nigerian states and the future success of Nigeria will always take precedence over any individual interests. This very commitment inspires us as we anticipate creating sustainable solutions for our refineries in the near future. #Nigerianrefineries #willwork”.

Despite spending an estimated $3bn on rehabilitation and turnaround maintenance in recent years, only a 60,000-bpd segment of the Port Harcourt complex briefly came online before operations were suspended after short test runs. For long stretches, domestic fuel supply has relied almost entirely on imports.

NNPCL is also counting on the gradual ramp-up of production at the privately owned Dangote refinery, which began supplying fuel to the domestic market this year, although distribution volumes remain limited during its phased start-up.