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[BUSINESS] · Nigeria · 41 sources

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Dangote Refinery drives 43.94% growth in Nigeria's oil refining sector

Nigeria’s oil refining sector experienced a significant 43.94% year-on-year growth in the second quarter of 2026, driven largely by the operational ramp-up of the Dangote Petroleum Refinery. The facility increased its crude distillation capacity from 650,000 to 700,000 barrels per day in February 2026.

Despite this domestic capacity expansion, petrol imports rose by 43.3% in July 2026, accounting for approximately 43% of the total supply. This trend has sparked a conflict between the Dangote Refinery and major petroleum marketers. The refinery has considered restricting sales to marketers who continue to import fuel, citing concerns that substandard imported petrol is being blended with its high-quality products.

In response to rising costs, NNPCL increased its petrol pump price in Abuja to ₦1,345 per litre. Dangote Refinery has defended its own recent price hikes, attributing them to the costs of previously purchased crude and logistics. Meanwhile, economists have urged the NMDPRA to publish transparent supply-gap assessments before issuing new import licenses to protect domestic refining investments and reduce foreign exchange pressure.

Entities

Aliko Dangote · CPPE · Centre for the Promotion of Private Enterprise · Dangote Petroleum Refinery · Dangote Refinery · Lagos · Muda Yusuf · NMDPRA · NNPC · NNPC Limited · NNPCL · National Bureau of Statistics

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