Nigeria is beginning to reap tangible economic benefits from the Dangote Refinery as the company says local fuel production has helped the country save more than ₦10 billion annually in foreign exchange.
The Senior General Manager, Corporate Communications at Dangote Industries Limited, Mr. Sunday Esan, disclosed this while speaking during activities marking the 2025 Nigeria Union of Journalists (NUJ) Media Week in Lagos. According to him, the savings come from a significant reduction in the importation of refined petroleum products, with the Dangote Refinery increasingly replacing fuel previously sourced from abroad.
Esan revealed that Nigeria’s fuel import bill dropped sharply following the commencement of operations at the 650,000-barrel-per-day Dangote Refinery. He said petroleum imports declined from about $2.6 billion in the first quarter of 2024 to approximately $1.2 billion in the first quarter of 2025, reflecting the growing impact of domestic refining on the nation’s foreign exchange demand.
He described the refinery as a strategic national asset that goes beyond profit-making, stressing that it is helping to stabilise fuel supply, reduce pressure on the naira, conserve scarce foreign exchange, and improve Nigeria’s energy security.
In addition to foreign exchange savings, the refinery is expected to support job creation, boost local industries, and reduce fuel scarcity caused by supply disruptions from international markets. With continued ramp-up of production and plans to expand capacity to 1.4 million barrels per day, analysts believe Nigeria’s reliance on imported petrol, diesel and aviation fuel could drop further in the coming years.
Although the ₦10 billion annual savings figure was provided by Dangote Industries, energy experts note that the broader impact of local refining could run into several billions of dollars if crude-to-product substitution continues at scale. The refinery’s progress is therefore being closely watched as a potential turning point in Nigeria’s decades-long dependence on imported fuel.
As local refining gains momentum, stakeholders say sustained operations at the Dangote Refinery could mark a major shift in Nigeria’s oil and gas value chain, positioning the country as a refining hub for West Africa while easing the long-standing burden of fuel importation on the economy.