Nigeria Seeks to End Crude Oil Export Paradox with Dangote Refinery
Nigeria is aiming to end its paradox of exporting unrefined crude oil while importing large volumes of refined fuels, which has plagued its oil industry since the late 1950s. As Africa's largest crude oil producer, Nigeria seeks to turn itself into a regional refining hub capable of processing most of its crude output domestically.
The Petroleum Industry Act (PIA) of 2021 requires producers to set aside part of their crude for local refineries, and the Nigerian Midstream and Downstream Petroleum Regulatory Authority is enforcing this rule strictly. This would eventually allow most of Nigeria's crude production to be processed domestically rather than exported unrefined.
The Dangote refinery, owned by Aliko Dangote's group, is central to this transformation. The plant recently exceeded its nameplate design capacity during a technical performance test and will expand its capacity more than double in the coming years.