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Dangote Refinery Rebuts Shutdown Rumors, Affirms Robust Operations

Dangote Petroleum Refinery has clearly denied rumours of a prolonged shutdown of its gasoline production unit. Anthony Chiejina, spokesman for the Dangote Group, addressed these concerns on Monday, September 8, which created uncertainty in Nigeria’s oil sector. The speculation, which emerged from unverified industry reports, falsely claimed the refinery’s key gasoline-making facility would be offline for two to three months due to technical issues. Mr. Chiejina clarified that the refinery is operating normally, with no plans for an extended closure, dispelling fears of disruptions in fuel supply that could affect regions like Rivers State, where steady petrol access supports local commerce and transport.

The refinery, located on the outskirts of Lagos, began processing crude oil in January 2024, a milestone in Nigeria’s quest for energy self-sufficiency. With a capacity of 650,000 barrels per day, it has significantly reduced the country’s dependence on imported gasoline. Industry data indicates that petrol imports from Europe and the UK have declined from approximately 200,000 barrels per day in early 2024 to about 120,000 barrels daily by mid-year, easing pressure on Nigeria’s foreign exchange reserves. This shift benefits areas like Rivers State, where reduced import costs could stabilise fuel prices for businesses reliant on generators and transport.

The rumour of a shutdown reportedly originated from a misunderstanding of routine maintenance schedules. Industry monitor IIR Energy suggested in early September 2025 that the refinery’s Residue Fluidised Catalytic Cracking Unit (RFCCU), which produces gasoline, was offline due to catalyst leaks, with repairs potentially lasting months. However, Dangote officials countered that any maintenance is short-term and will not impact overall production. They emphasised that the refinery is currently processing around 445,000 barrels per day, with plans to reach 700,000 barrels by year-end, reinforcing its critical role in Nigeria’s fuel market.

Adding to its achievements, the refinery recently exported two gasoline cargoes to the U.S. East Coast, meeting stringent American fuel standards. These shipments, expected to arrive in New York soon, mark a significant step in positioning Nigeria as a global player in refined petroleum products. The facility has also diversified its crude sources, importing Ghana’s Sankofa crude and U.S. WTI Midland to complement Nigerian grades, ensuring operational flexibility despite local supply challenges.

Also Read: Government’s Refinery Strategy Needs Urgent Reform

Securing sufficient domestic crude remains a hurdle. The refinery has urged Nigeria’s upstream regulator to enforce laws mandating local producers to supply refineries, citing high costs of importing crude at a premium. In July 2024, crude deliveries peaked at 570,000 barrels per day, with 60 per cent from U.S. sources and 40 per cent from Nigerian fields. Government efforts to boost local production are ongoing, which could create jobs in oil-producing regions like Rivers State, enhancing economic activity without making it the focal point.

The refinery’s impact extends beyond Nigeria. By slashing petrol imports, it has disrupted the $17 billion annual gasoline trade from Europe to Africa, prompting European refineries to seek new markets. This shift underscores the facility’s global influence, as it aims to meet Nigeria’s daily petrol demand of 45 to 50 million litres while exporting surplus products to countries like Cameroon.

In Rivers State, the ripple effects are tangible. Affordable and reliable fuel supplies could ease the burden on small businesses, from transport operators to market vendors, who rely on consistent energy sources. The refinery’s success in maintaining operations and countering misinformation is crucial for sustaining these benefits. As Nigeria moves toward full deregulation of its fuel market, with the state-owned NNPC no longer the sole buyer of Dangote’s petrol, the refinery’s role in fostering a competitive market grows even more significant.

Dangote’s commitment to transparency and operational excellence aims to quell doubts and maintain public trust. The company’s proactive response to the shutdown rumours, which lacked credible backing, highlights its determination to keep Nigeria’s energy sector on track. As the refinery continues to scale up, it remains a cornerstone of economic progress, with far-reaching implications for regions like Rivers State and beyond.

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