Dangote Refinery Fuels Nigeria's Future: A Competitive Leap Forward

Nigeria's Dangote Refinery runs at 85% capacity, aiming to deliver European-standard products by January. It faced crude supply challenges due to a dispute with the NNPC. Despite starting petrol processing in September, distribution hurdles remain. The refinery recently cut petrol prices to ease transport costs.

Nigeria's Dangote Refinery, now operating at 85% capacity, is on track to deliver products meeting European standards by January, officials announced on Friday.

The 650,000-barrel-per-day refinery, constructed by Nigerian billionaire Aliko Dangote in Lagos, seeks to rival European refiners but faced difficulties sourcing sufficient local crude. Edwin Devakumar, the refinery's head, confirmed achieving 550,000 bpd in crude distillation.

Due to a supply dispute with Nigeria's state-oil firm NNPC, the refinery turned to international markets for crude. The NNPC, expected to supply 300,000 barrels daily under a $2.76 billion deal, couldn't fulfill its commitment. The refinery, producing diesel, naphtha, and jet fuel since January and processing petrol since September, faces distribution challenges as local traders and the NNPC export refined products. Recently, it cut petrol prices to 899.50 naira per litre to ease transport costs during the holiday season.

(With inputs from agencies.)