Dangote Refinery Expansion to 700,000 bpd Set to Squeeze Foreign Competitors

The Dangote Petroleum Refinery is set to expand its processing capacity by 7.7 per cent, from 650,000 barrels per day (bpd) to 700,000 bpd, in a move expected to further consolidate its dominance in Africa’s petroleum market.

Industry analysts say the expansion would not only strengthen the refinery’s control over the regional supply chain but also reduce the market shares of foreign refineries, particularly those in Europe, which have traditionally supplied petroleum products to Nigeria and other African nations.

Checks revealed that the refinery’s operations have already disrupted the historical flow of imported petroleum products into the continent. With Nigeria Africa’s largest oil producer now gradually cutting down on product imports, foreign refineries are beginning to feel the squeeze.

Experts believe the latest expansion will deepen this shift, positioning the Dangote Refinery as a central hub for petroleum products in Africa while significantly reducing the continent’s dependence on overseas markets.