Dangote Refinery Speaks on Shutdown Rumour, Nears Full Capacity

Dangote Refinery Speaks on Shutdown Rumour, Nears Full Capacity

  • The Dangote Refinery management debunked reports that the facility is planning to shut down operations in a few months
  • The company's vice president for Oil and Gas, Edwin Devakumar, dismissed the claims as false and illogical
  • According to him, the reports suggesting a planned shutdown for maintenance or its key petrol-producing unit were labelled inaccurate

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

Management of the Dangote Refinery has firmly dismissed widespread rumours of an imminent shutdown at the company’s 650,000 barrels-per-day (bpd) complex in Lagos.

Reports suggesting a planned December turnaround for its key petrol-producing unit have been labelled inaccurate and illogical.

Dangote Refinery refutes shutdown rumours amid expansion plans
Aliko Dangote's refinery dismisses shutdown rumours. Credit: Bloomberg/Contributor
Source: Getty Images

Speaking on behalf of the company, Edwin Devakumar, Executive Director at Dangote Industries, clarified that there are no plans to shut down the Residual Fluid Catalytic Cracker (RFCC) unit.

“There is no turnaround maintenance being planned for December,” he stated. “That would be illogical, especially when gasoline demand would be good.”

Read also

Marketers warn of Dangote’s monopoly in oil industry ahead of fuel distribution plans

Gasoline demand makes shutdown “Illogical”

The RFCC unit, which has a refining capacity of 250,000 bpd, plays a central role in Nigeria’s plan to reduce dependence on imported petrol.

A December turnaround, as rumoured in some industry quarters, would fall in the middle of the high-demand festive season, when Nigeria typically experiences spikes in petrol usage.

Devakumar said operational performance at the facility remains robust and that the company has no interest in disrupting fuel supply at a time when both local and regional demand is strong.

Dangote Refinery Maintenance completed ahead of schedule

Earlier this year, Dangote Refinery had scheduled a 30-day maintenance shutdown for the RFCC unit in June 2025.

However, a Reuters report in May revealed that the planned maintenance was cancelled after the company carried out emergency repairs and system upgrades between April 7 and May 11.

The upgrades reportedly improved system stability and eliminated the need for another full-scale shutdown this year.

Read also

NNPC gives reasons Port Harcourt Refinery is not for sale despite Dangote’s warning

Dangote Refinery operating near full capacity

According to global commodities analytics firm Kpler, crude deliveries to the refinery averaged 605,000 bpd in July, representing approximately 93% of full plant capacity.

This consistent supply has allowed the facility to maintain strong output across its various production units.

Market sources told Argus that any disruption, whether planned or unexpected, could create an opportunity for European petrol traders to offload surplus fuel into the Nigerian market.

Dangote Refinery plans to expand the refinery to 700,000 bpd-capacity.
Aliko Dangote describes the refinery’s rumoured planned shutdown as untrue and illogical. Credit: Bloomberg/Contributor
Source: UGC

However, Dangote's continued operations may limit those windows, especially as the local refinery increasingly meets Nigeria’s fuel needs.

Dangote Refinery reveals expansion plans

While denying shutdown rumours, the refinery has also revealed ambitious expansion plans aimed at cementing its role in Nigeria’s energy sector.

Dangote recently announced plans to raise refining capacity from 650,000 bpd to 700,000 bpd by 2028.

This expansion would make the plant one of the largest in the world and support exports to West Africa and beyond.

Read also

Ikeja Electric, EKDC alert Lagos residents on power outages, give time to expect electricity daily

In addition, the company is constructing what it describes as “Nigeria’s largest deep-sea port” adjacent to the refinery complex.

The port will facilitate exports of petroleum products, fertiliser, and petrochemicals, solidifying the refinery’s place as a hub for industrial trade.

Strategic clarity over speculation

With robust output, cancelled maintenance, and a growing market footprint, Dangote Refinery appears to be entering a new phase of operational confidence.

The company’s focus is now on expansion, market stability, and delivering refined products to meet regional demand, contrary to any talk of shutdowns.

Dangote Refinery slashes cooking gas price

Legit.ng earlier reported that a few days after threatening to slash the price of liquefied natural gas (LPG) in Nigeria, Aliko Dangote made good on his promise.

A prior report by Legit.ng disclosed that the billionaire announced plans to cut cooking gas prices and cautioned marketers against bypassing traditional distribution channels if they do not comply with the refinery’s pricing guidelines.

Read also

Dangote Cement’s net income quadruples to N309 billion, surpasses market expectations

The billionaire businessman disclosed this during a facility tour with the Lagos Business School’s GCEO Africa delegation at the Lekki-based refinery on Tuesday, July 15, 2025.

Proofreading by Funmilayo Aremu, copy editor at Legit.ng.

Source: Legit.ng

Authors:
Pascal Oparada avatar

Pascal Oparada (Business editor) For over a decade, Pascal Oparada has reported on tech, energy, stocks, investment, and the economy. He has worked in many media organizations such as Daily Independent, TheNiche newspaper, and the Nigerian Xpress. He is a 2018 PwC Media Excellence Award winner. Email:pascal.oparada@corp.legit.ng

Page was generated in 2.2389769554138