Dangote Refinery Saves Nigeria Over ₦10bn Annually in Forex — Official
Nigeria’s quest for energy security and economic stability received a major boost as a senior official disclosed that the Dangote Petroleum Refinery is now saving the country over ₦10 billion annually in foreign exchange. This development comes as the refinery begins to gradually reduce the nation’s dependence on imported refined petroleum products.
According to the official, the refinery’s growing capacity to supply diesel, aviation fuel, and premium motor spirit (PMS) locally has significantly lowered the pressure on Nigeria’s foreign reserves. Before now, the country relied heavily on costly fuel imports, draining billions of dollars and weakening the naira.
A Major Relief for Nigeria’s Forex Challenges
Nigeria has long battled recurrent forex shortages due to its large import bill. The official noted that the introduction of locally refined products from Dangote Refinery is helping to reverse this trend.
“With the refinery now operational and supplying key petroleum products domestically, we are already seeing over ₦10 billion in annual forex savings. This impact will continue to grow as more production lines come onstream,” the official stated.
He added that the refinery’s operations have helped reduce the government’s reliance on foreign suppliers, cut logistics costs, and stabilize fuel availability across the country.
Boosting the Naira and Strengthening Local Supply
Economists say the forex savings could help ease pressure on the naira, improve market liquidity, and support Nigeria’s broader economic recovery efforts. The refinery is also expected to enhance energy security, reduce import bottlenecks, and stabilize fuel prices in the long run.
The 650,000 barrels-per-day refinery — one of the largest in the world — continues to scale up operations and is projected to meet Nigeria’s entire domestic demand while exporting surplus to neighboring countries.
More Savings Expected as Production Ramps Up
Industry experts believe the savings could double or even triple annually once the refinery fully optimizes its output.
With Nigeria still battling high inflation and currency volatility, the contribution of the Dangote Refinery provides a rare piece of positive economic news and a sign of hope for the nation’s energy sector.
