Nigeria’s largest refinery took over a decade and $20 billion to begin operations

Key takeaways

  • Dangote first announced the refinery in 2013 with a $9 billion plan, securing $3.3 billion in funding.
  • The estimated cost grew to $15 billion in 2017, as planned refining capacity increased to 650,000 barrels per day.
  • By 2023, the refinery was finally commissioned, after its total cost surged past $20 billion.
  • In December 2023, the first crude supply of 1 million barrels arrived, marking the start of operations.
  • By 2024, the refinery began producing diesel and jet fuel, with 6 million barrels received for processing.

The Dangote Refinery’s development has been a decade-long process, starting in 2013 with a $9 billion plan and evolving into a $20 billion+ project. Delays pushed completion far beyond the initial 2018 target, with the first crude supply arriving only in December 2023. The refinery began producing diesel and jet fuel in 2024, processing 6 million barrels, and is now expanding its trade network, importing 3 million barrels from the US while exporting jet fuel to Saudi Arabia and the US.

Source:

Dangote group, Media reports

Period:

2013-2025
HTML code to embed chart
Want a bespoke report?
Reach out
Tags
Related Insights

Nigeria’s exports remain oil-dominated, but non-oil exports are steadily rising—reaching up to 18% in early 2025
  • Oil exports continued to dominate, averaging over 88% of total exports in 2024 and remaining above 81% in the first half of 2025.
  • Non-oil exports rose gradually, from a low of 6.9% (February 2024) to a high of 18.1% (January 2025).
  • Peaks in non-oil export contributions occurred in July 2024 (16.4%) and January–April 2025 (13–18%), indicating progress toward diversification.
  • Total exports remained heavily oil-driven, though sustained double-digit non-oil shares in late 2024 and early 2025 show a slow shift.

US crude oil imports from Nigeria plunged 86%, from 2005's peak of 425.4m barrels to 61.4m barrels in 2024
  • The US imported 425 million barrels of crude oil and other petroleum products from Nigeria in 2005, the highest in the past 32 years.
  • The US shale boom reduced America’s reliance on foreign crude.
  • The launch of the Dangote Refinery has increased domestic demand for crude oil, further reducing the amount available for export to the US.
  • Nigeria, which was regularly a top five crude oil supplier to the US in earlier decades, ranked ninth among its suppliers in 2024.

After years of volatility, Nigeria’s crude oil production has increased in four consecutive quarters, rising to 1.68 mbpd in Q2 2025
  • Production dipped sharply in 2022, with the steepest quarterly decline of –16.08% in Q3, before recovering at year-end.
  • 2023 marked a rebound year, highlighted by strong quarterly growth of 18.85% in Q3, lifting production back above 1.5 mbpd.
  • 2024 showed relative stability, with modest fluctuations; production only briefly fell below 1.5 mbpd before gradually recovering.
  • By Q2 2025, output hit 1.68 mbpd, the highest in the series, supported by consistent growth in three straight quarters.

The US remained the dominant producer of bio-diesel, with 15.25 million metric tons produced in 2023
  • Only 37 countries produced bio-diesel in 2023.
  • No African country produced bio-diesel.
  • The US remained the dominant producer of bio-diesel with 15.25 million metric tons produced in 2023, which is 36% of the total quantity produced globally.
  • Germany was the top exporter of bio diesel with 2.18 million metric tons.

In the last one year, petrol prices in Nigeria fluctuated, reaching the maximum average price (₦1,262) in March 2025, before dropping gradually
  • Petrol prices in Nigeria rose by 52% between August 2024 (₦830.5) and March 2025 (₦1,261.7).
  • The highest monthly increase was in September 2024 (+24.1%), while the sharpest drop came in April 2025 (-17.1%).
  • By July 2025, prices had eased to ₦1,025, still 23% higher than a year earlier.
  • NNPC retail outlets offered significantly lower prices than the national average, with Abuja as low as ₦880 at the March 2025 peak.
  • Dangote Refinery offered relatively competitive pricing, ranging from ₦840 to ₦899, creating an alternative supply option.

The United States led global natural gas production in 2024, with Algeria, Egypt, and Nigeria appearing in the top 20
  • The United States dominates global natural gas production in 2024, contributing 1.03 trillion cubic metres (Tcm), nearly one-quarter of the world’s total.

  • Russia (0.63Tcm) and Iran (0.26Tcm) follow as the second and third largest producers.

  • China (0.25Tcm) and Canada (0.19Tcm) also feature strongly, rounding out the top five producers.

  • Collectively, these top five countries account for more than 50% of global production.

  • Emerging producers like Nigeria, Egypt, and Azerbaijan contribute significantly to the supply but remain far behind the leading nations.


POPULAR TOPICS
SIGN UP TO OUR NEWSLETTER
Get periodic updates about the African startup space, access to our reports, among others.
Subscribe Here
Subscription Form

A product of Techpoint Africa. All rights reserved