Dangote Refinery Licensed to Operate Only Two Processing Units, Says Energy Expert Sowunmi

Olabode Sowunmi, a prominent oil and energy analyst, has clarified that the Dangote Refinery, despite its widely publicized capacity of 650,000 barrels per day, is currently licensed to operate only two of its four key processing components. He made this disclosure during an appearance on Arise News, urging for a more realistic public understanding of the refinery’s current capabilities and limitations.

Sowunmi explained that although the Dangote Refinery is structurally capable of processing 650,000 barrels of crude oil daily, it is not yet producing anywhere near that volume because it lacks the necessary regulatory approvals for two critical segments of its operations.

He added that the company has yet to apply for those additional licenses, which are required before the full scope of the refinery’s capacity can be utilized.

“The Dangote Refinery is a facility with a capacity of 650,000 barrels per day; however, it is currently only operational in two areas of priority. The company has yet to apply for the licences for the other two priorities, which means it is not producing 650,000 barrels per day,” Sowunmi said.

He also cautioned that even if the refinery were to reach its full design output, it would still not be enough to fully meet Nigeria’s domestic demand for refined petroleum products. According to him, while the project is a significant advancement in reducing the country’s dependency on fuel imports, the notion that it can singlehandedly transform Nigeria’s energy balance is misleading.

Sowunmi’s remarks add a layer of complexity to public conversations around the refinery’s progress and its national significance. The Dangote Refinery was commissioned in May 2023 with high expectations, touted as the world’s largest single-train refinery and a potential game-changer for Nigeria’s oil refining landscape.

However, concerns have persisted over production delays, licensing hurdles, and the facility’s actual contribution to the domestic fuel supply.

The energy expert urged Nigerians and policymakers to temper expectations and recognize that full-scale refining capacity will require not only technical readiness but also regulatory compliance across all operational streams. Until the refinery completes its licensing process and activates all four key units, it will continue operating below its maximum design potential.

Sowunmi’s comments come at a time when Nigeria is still heavily reliant on imported refined products, despite being Africa’s largest crude oil producer. The hope has been that the Dangote project would ease this dependence, but his statements underscore that such a transformation will not be immediate and will require further regulatory and operational milestones.

As of now, there is no public timeline for when the remaining licenses will be secured or when full operations will begin. Meanwhile, the Dangote Group has yet to officially respond to Sowunmi’s assertions.