Nigeria: Dangote Refinery to Increase Production Amidst New Import Duty
Nigeria’s Dangote Petroleum Refinery says it is ramping up fuel production to meet the country’s growing petrol and diesel needs following the government’s introduction of a new 15% import duty on fuel.
The government announced the new tariff this week, saying it is meant to protect domestic refineries and encourage local production. Nigeria, despite being Africa’s top oil producer, has long depended on imported fuel due to the poor state of its old refineries.
Anthony Chiejina, spokesperson for the Dangote Group, said the new import duty is a welcome move that will help discourage the importation of substandard fuel and support the country’s push for self-sufficiency.
He disclosed that the $20 billion refinery, which has a capacity of 650,000 barrels per day, is now producing over 45 million litres of petrol and 25 million litres of diesel daily, which is more than enough to meet Nigeria’s current fuel demand.
Since the refinery started producing petrol in September 2024, fuel shortages have eased, and pump prices have fallen across the country. Many Nigerians see the refinery as a game changer for the nation’s energy sector and a major step toward ending fuel importation.
However, not everyone is satisfied with the new policy. Local fuel importers warn that the 15% duty could push them out of business, leading to reduced competition and possible market manipulation in the future.
Billy Harry, president of the Petroleum Products Retail Outlets Owners Association of Nigeria, said importers have always acted as a price-check on local refiners. He cautioned that without proper regulation, the new tariff could create a monopoly and harm consumers in the long run.
Despite the concerns, industry experts say the move marks a significant step toward strengthening Nigeria’s energy independence and protecting multi-billion-dollar investments in the country’s refining sector.
