Aliko Dangote, Africa’s richest man and founder of Dangote Industries, is ramping up crude oil storage capacity at his $20 billion Dangote Oil Refinery by 41.67%, adding 6.3 million barrels of imported crude to stabilize operations. This bold move comes as the refinery faces supply challenges stemming from insufficient crude oil deliveries from Nigeria’s state-owned Nigerian National Petroleum Company (NNPC) Limited.
To address the shortfall, Dangote Industries is constructing eight new crude storage tanks, four of which are nearing completion. Once operational, these tanks will increase the refinery’s storage capacity to 3.4 billion liters, equivalent to an additional 1 billion liters of crude oil. This strategic investment will help maintain uninterrupted operations at the refinery, which boasts a refining capacity of 650,000 barrels per day.
“We are building these additional tanks to compensate for the insufficient local supply,” said Devakumar Edwin, Vice President for Oil and Gas at Dangote Industries. “Importing crude from other countries instead of buying locally means that our crude stockpiles will have to be higher.”
Refinery’s Milestones and Market Reach
Despite initial challenges, the Dangote Refinery began producing diesel and aviation fuel in early 2024, followed by petrol in September. These products are already serving Nigeria’s domestic market and being exported to regional markets such as Cameroon, Angola, Ghana, and South Africa.
The refinery forms a critical part of the Dangote Petrochemical Complex, which also houses one of the world’s largest fertilizer production facilities. Positioned on a Lagos peninsula, the refinery’s single-train design makes it the largest of its kind globally, reinforcing its status as a landmark project for Africa’s industrial transformation.
Expanding Influence Across Africa
In addition to refining, Dangote is eyeing expansion opportunities across Africa. Plans are underway to establish a new refinery in Angola and scale up cement production, further cementing his position as a key player in Africa’s industrial and energy sectors. These ventures align with Dangote’s vision of driving industrial growth across the continent while increasing his influence in the global energy market.
A Landmark for Africa
Devakumar Edwin described the Dangote Refinery as a project “designed by Nigerians for a global market.” Its ambitious scale and forward-looking strategy underscore Dangote Industries’ commitment to addressing Africa’s energy needs while boosting economic growth and job creation.
As the refinery ramps up its operations and expands its reach, it continues to redefine Africa’s energy landscape, positioning Dangote Industries as a trailblazer in the continent’s industrial evolution.
Richlist Nigeria will monitor and report on the progress of this monumental project, which serves as a beacon of innovation and economic potential for the region.
