The Managing Director of Dangote Petroleum Refinery, David Bird, has clarified that the $20bn Lekki-based facility is not importing finished petroleum products, countering public speculation around recent imports linked to the refinery.
Speaking to journalists during a briefing at the refinery yesterday, Bird explained that what some observers described as imported fuel were, in fact, intermediate feedstocks used in the refining process.
He noted that the refinery operates a merchant refining model, which differs significantly from the conventional refinery structure common in crude-producing countries.
According to Bird, unlike refineries in countries such as Saudi Arabia, Kuwait, and the United Arab Emirates that rely largely on domestic crude supplied via pipelines, the Dangote refinery sources crude oil and other feedstocks from the global market, mostly delivered by sea.
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This approach allows the facility to process a wide range of crude types and intermediate components rather than depending solely on Nigerian crude.
He said the merchant refinery model, widely used in major global refining hubs such as Europe, Singapore, and Taiwan, was deliberately adopted to maximise operational flexibility and value.
To support this structure, the Dangote refinery was designed with a large storage capacity, enabling different crude oils and feedstocks to be stored separately, blended, and processed in various combinations.
Bird explained that different crude blends yield varying proportions of products such as LPG, naphtha, kerosene, and diesel. As a result, certain processing units may be underutilised unless additional feedstocks are introduced. Given the capital-intensive nature of refining, he stressed that maximising utilisation across all units is essential for efficiency and profitability.
He added that the real value in refining lies not in crude distillation alone but in advanced conversion units that transform low-value residues into high-value products.
According to him, when certain crude types produce insufficient residues, the refinery imports residue feedstocks to keep these conversion units operating at full capacity.
Bird emphasised that the materials being imported are not finished fuels for direct consumption but semi-processed components that undergo further refining.
Some of these include high-sulphur reformate and other intermediate products that many refineries are unable to fully process.
Dangote refinery, he said, has the capacity to upgrade such components into Euro 5-compliant fuels.
He also noted that some locally produced Nigerian condensates, despite their clear appearance, have low octane ratings and are unsuitable for direct use in vehicles without further processing.
Through its blending and conversion systems, the refinery is able to upgrade these streams into finished fuels that meet international standards.
According to Bird, the refinery is currently producing petrol with sulphur levels of 50 parts per million and is technically prepared to transition to 10 ppm once Nigeria updates its fuel specifications.
He added that the quality of its products meets global standards, enabling exports to international markets.
The Dangote refinery has already exported gasoline to the United States and aviation fuel to other global destinations, demonstrating its ability to compete internationally.
Bird said the development of a domestic refining industry capable of producing cleaner fuels offers significant public health and environmental benefits for Nigeria.
“Nigeria should be proud to have a refinery that can produce fuels to the latest global standards, with clear benefits for public health,” he said.
