By Alhassan Kpaki
Dangote Petroleum Refinery has crossed a major production milestone in Nigeria, operating above its installed capacity in August, as the Dangote Group declared that a legal challenge over land would not derail its planned $15 billion-$16 billion refinery in Kenya.
Latest figures from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) showed that the 700,000-barrel-per-day Lagos refinery recorded an average capacity utilisation of 105.21 per cent in August 2026.
The refinery processed an average of 736,470 barrels of crude oil daily during the month, up sharply from about 497,000 barrels per day in July, when utilisation stood at 71 per cent.
The surge came as domestic crude supply to the facility increased by 16.75 per cent to 683,000 barrels per day.
Production of petrol, diesel, and aviation fuel consequently averaged 84.43 million litres daily, strengthening the refinery’s position in Nigeria’s domestic market while generating substantial volumes for export.
Petrol deliveries to the domestic market jumped 39 per cent month-on-month to 35.87 million litres per day, representing about 71 per cent of national domestic PMS supply.
At the same time, petrol imports declined by 26 per cent to 14.60 million litres daily.
The impact was even more pronounced in diesel, where the refinery supplied an average 12.37 million litres daily to the domestic market, while national imports plunged from 7.90 million litres per day in July to just 1.30 million litres in August.
Beyond supplying Nigeria, the refinery exported an average 9.73 million litres of petrol, 8.75 million litres of diesel, and 21.30 million litres of aviation fuel daily during the month.
The performance marks a dramatic shift for a country that for decades depended heavily on imported refined petroleum products despite being Africa’s leading crude producer.
Dangote Group said the figures underscored the refinery’s contribution to energy security, foreign exchange conservation, industrial development, and Nigeria’s growing refined-products export capacity.
Buoyed by the Lagos refinery’s performance, Africa’s richest industrial group is now pushing ahead with another 700,000-barrel-per-day refinery in Lamu, Kenya, estimated to cost between $15 billion and $16 billion.
The company said the Kenyan project remains on course despite a land ownership dispute now before the Malindi Environment and Land Court.
The court ordered the status quo to be maintained on the disputed land pending an October 14 hearing following a suit filed by 133 Chandavai residents who claim the proposed refinery site forms part of their ancestral land.
Dangote Group said the order did not prevent the project’s groundbreaking ceremony, although activities on the disputed land would have to comply with the court’s directive while the case is pending.
Speaking at an investor forum in Nairobi, Dangote Group President Aliko Dangote maintained that the legal challenge would not derail the company’s plans.
He said land disputes were not unusual in the development of large infrastructure projects across Africa and expressed confidence that the issues would be addressed through the appropriate legal processes.
The proposed Lamu refinery, scheduled for completion by 2030, is intended to replicate the scale of the Lagos facility and serve Kenya and the wider East African market.
Although Kenya currently produces no commercial quantities of crude oil, the project is expected to process imported crude and provide refined products for the regional market, potentially reducing East Africa’s dependence on imported finished petroleum products.
The ambitious Kenyan expansion comes as Dangote Refinery pursues its public offering, extending the group’s drive to build an integrated African refining and industrial platform.
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