Aliko Dangote, President of the Dangote Group and founder of the $20 billion Dangote Petroleum Refinery in Lekki, Lagos, has announced plans for a sweeping overhaul of Nigeria’s downstream oil sector, describing it as a “major shakedown” that will significantly transform the industry. Speaking to journalists after President Bola Tinubu’s recent visit to the refinery, Dangote emphasized that this initiative is not about reducing fuel prices but about completely restructuring the downstream segment of the oil industry.

The refinery, which has a capacity of 650,000 barrels per day, is already positioned as a game-changer in Nigeria’s energy landscape, aiming to reduce the country’s historic dependence on imported petroleum products and boost domestic refining capacity. Dangote hinted that the upcoming changes would propel the refinery and the sector onto a “massive trajectory,” suggesting that in the next five years, the refinery will be just one part of a much larger industrial expansion.

While Dangote did not disclose specific details of the overhaul, he assured that the announcement would be one of the most significant shifts in Nigeria’s oil and gas sector. The initiative aligns with President Tinubu’s economic reforms, which have fostered a more conducive environment for industrial growth and long-term investment. Dangote praised the government’s “Nigeria First Policy,” aimed at boosting local production and economic self-reliance, and highlighted ongoing infrastructure projects that support the refinery’s operations, such as major road developments around Lagos.

Additionally, Dangote revealed plans to list the refinery on the Nigerian stock exchange, following the fertiliser company’s listing earlier this year, signaling a move toward greater transparency and public participation in the company’s growth.

Nigeria’s downstream petroleum sector, responsible for refining, distributing, and retailing petroleum products, has long faced challenges including limited refining capacity, fuel subsidy distortions, infrastructure deficits, and fuel smuggling. Dangote’s planned overhaul promises to address these systemic issues, potentially reshaping the energy economy of Africa’s largest oil producer.

In summary, Dangote’s vow to “shake” the downstream oil sector signals a major industrial and economic shift, leveraging the Dangote Refinery as a cornerstone for Nigeria’s energy independence and industrialisation ambitions. This development is poised to have far-reaching impacts on the country’s oil industry, economic growth, and regional energy dynamics.