Oil & Gas Refining in Nigeria
Tracking Nigeria's refinery operations, fuel production, and petroleum industry updates
Dangote Refinery: Africa's Largest
The Dangote Petroleum Refinery, located in Lekki Free Zone, Lagos, is the world's largest single-train refinery with a capacity of 650,000 barrels per day. This mega-project represents a turning point for Nigeria's petroleum sector, with plans to expand to 1.4 million bpd within three years.
Key Facts
- •Capacity: 650,000 bpd nameplate (reached 700,000 bpd in June 2026 performance testing)
- •Investment: Over $20 billion (exceeded initial $9B estimate)
- •Location: Lekki Free Zone, Lagos
- •Workforce: 57,000+ employees (with plans to add 65,000)
- •Status: Operational since 2024 (petrol production began September 2024)
Daily Production Output
- •Petrol (PMS): 57 million litres/day
- •Diesel (AGO): 27 million litres/day
- •Aviation Fuel: Actively producing jet fuel
- •Polypropylene: 500,000 tonnes/year
- •Other Products: Kerosene, LPG, Naphtha
Impact on Nigeria's Economy
The Dangote Refinery is expected to save Nigeria $7-10 billion annually in refined product imports, potentially stabilise fuel prices, and make Nigeria a net exporter of petroleum products. The facility has already significantly reduced fuel scarcity and queue times at filling stations across the country.
NNPC Refineries
Nigeria operates four government-owned refineries under NNPC Limited with a combined installed capacity of 445,000 bpd. Rehabilitation efforts are ongoing to restore operations after decades of poor maintenance.
Port Harcourt Refinery (Old)
Limited OperationsLocation: Alesa Eleme, Rivers State
Capacity: 60,000 bpd
Commissioned: 1965
Nigeria's first refinery. NNPC claims operational; reports suggest limited output at ~10% capacity.
Port Harcourt Refinery (New)
Under RehabilitationLocation: Alesa Eleme, Rivers State
Capacity: 150,000 bpd
Commissioned: 1989
Rehabilitation over 90% complete as of December 2025. Expected operational by mid-2026.
Warri Refinery (WRPC)
Non-OperationalLocation: Warri, Delta State
Capacity: 125,000 bpd
Commissioned: 1978
Quick-fix maintenance ongoing. Initial target of 100,000 bpd upon restart.
Kaduna Refinery (KRPC)
Non-OperationalLocation: Kaduna, Kaduna State
Capacity: 110,000 bpd
Commissioned: 1980
Serves northern Nigeria. Projected to be operational by late 2024/early 2025.
Understanding Fuel Pricing
Why Are Fuel Prices High?
- •Global Crude Pricing: Crude oil is sold at international market rates, even for domestic refineries
- •Subsidy Removal: Federal Government removed fuel subsidies in May 2023
- •Exchange Rate: Naira devaluation increases costs for imported components and crude pricing
- •Distribution Costs: Transportation and logistics add to retail price (prices highest in North-East)
- •Market Dynamics: Competition between Dangote and NNPC is beginning to influence pricing
Fuel Price Range (June 2026)
Prices vary significantly by state. South-West (₦1,116 avg) has lowest prices; North-East (₦1,246 avg) has highest. Data from NBS Price Watch.
Future of Nigeria's Petroleum Sector
✓ Positive Developments
- • Dangote Refinery producing 57M+ litres of petrol daily, reducing import dependency
- • Dangote petrol gantry price dropped to ₦699/L in late December 2024
- • Port Harcourt New Refinery expected operational by mid-2025
- • Local refining capacity will stabilise prices and reduce forex pressure
- • Petrochemical production creating new industries and jobs
⚠️ Ongoing Challenges
- • Crude oil theft reducing production by 200,000-400,000 bpd
- • Pipeline vandalism disrupting supply chains
- • Distribution infrastructure needs modernization
- • Local crude still priced at international rates, limiting cost savings
- • Major IOCs (Shell, ExxonMobil) divesting from onshore assets
Track Nigeria's Refineries
Explore our interactive refinery map and calculate your fuel-related energy costs