Dangote Refinery cuts Nigeria's fuel imports, bolsters economy and sovereign rating

The 650,000‑barrel‑per‑day Dangote Petroleum Refinery & Petrochemicals has ramped up operations, meeting about 80 % of Nigeria’s domestic gasoline demand and sharply reducing the country’s reliance on imported refined fuel. Analysts say the new capacity is improving Nigeria’s balance of payments, lifting foreign‑exchange reserves from roughly $33 billion in 2023 to around $50 billion by early 2026, and supporting a projected rise in the current‑account surplus to 5.8 % of GDP in 2026.

S&P Global Ratings cited the refinery’s contribution when it upgraded Nigeria’s sovereign credit rating from B‑ to B, noting that the plant’s output enhances energy security, reduces import bills and backs economic growth. Dangote Industries plans feasibility studies to double refining capacity to about 1.4 million barrels per day, further positioning Nigeria as a regional refining and export hub.

The refinery’s expansion aligns with broader reforms such as fuel‑subsidy removal, exchange‑rate liberalisation and higher oil production, which together are reshaping Nigeria’s downstream sector and industrialisation agenda.