The Dangote Refinery, which is the Africa’s largest petroleum refinery, has taken a bold step towards profitability by announcing plans to export its first two fuel cargoes. The news came after much anticipation from Nigerians who have been eagerly waiting for the refinery’s contribution to the Nigeria’s economy since its inauguration in May 2023.
According to trading sources, the refinery has issued tenders for the sale of a 65,000-metric ton cargo of low-sulphur straight-run fuel oil and a 60,000-ton cargo of naphtha. The fuel oil cargo has already been awarded to Trafigura and is set for loading later this month.
While Nigerians eagerly awaits the refinery’s domestic fuel production, this initial export move suggests the facility is optimizing its operations and seeking profitable opportunities in the global market. The refinery’s $20 billion price tag has created high expectations for its impact on the Nigerian economy, and both domestic and international markets will be closely watching its progress.
Despite commencing production of diesel and aviation fuel in January, the Dangote facility, is yet to release its products to the Nigerian market due to persisting regulatory difficulties.
The refinery, owned by Aliko Dangote and boasting a 650,000-barrel-per-day capacity, had initially set a January 31st launch date. However, a month after production began, regulatory approvals remain outstanding, delaying the highly anticipated market entry.
This development comes as a disappointment to many Nigerians who were hoping for solace from fuel shortages and potentially lower prices with the introduction of locally produced fuel. The refinery was expected to not only meet Nigeria’s domestic fuel needs but also to generate a surplus for export.
While the Dangote Group sail the regulatory process, Nigerians wants to find out when and if the fuel shortage situation will improve with access to this potentially revolutionary source.
