Oil and Gas
Dangote Plans $46 billion Mega Refineries to connect West and East Africa
From what began as Dangote’s landmark refinery project in Nigeria, it is now evolving into a continent-wide refining network, with the company confirming plans for a 700,000-barrel-per-day (bpd) refinery in Kenya as part of a $46 billion investment programme spanning its refining, cement and fertiliser businesses between 2026 and 2028.
Dangote Industries, upon delivery, expects to operate a combined refining capacity of 2.1 million bpd which includes the 1.4 million bpd in Nigeria and 700,000 bpd in Kenya, creating one of Africa’s largest privately owned refining networks.
Stretching from the Atlantic coast in West Africa to the Indian Ocean in East Africa, the twin hubs are expected to strengthen intra-African fuel trade while reducing the continent’s reliance on imported refined petroleum products.
The expanded plans were disclosed by Dangote Industries’ Group Vice President for Oil and Gas, Devakumar Edwin, during a visit by a delegation from the Republic of the Congo’s national oil company, Société Nationale des Pétroles du Congo (SNPC), to the Dangote Petroleum Refinery in Lagos.
During the visit, the company outlined its long-term African expansion strategy while discussing regional energy cooperation.
The latest announcement also marks a significant increase from Dangote’s earlier proposal for a 650,000-bpd refinery in Kenya, signalling growing confidence in East Africa’s long-term fuel demand and the country’s strategic importance to the group’s continental ambitions.
Why Kenya emerged as Dangote’s preferred choice
Kenya had emerged as Dangote’s preferred destination after the company evaluated several locations across East Africa.
The Port of Mombasa, East Africa’s busiest seaport, already serves as a key gateway for petroleum products destined for Uganda, Rwanda, South Sudan, eastern Democratic Republic of Congo and parts of Tanzania, making it an ideal hub for regional fuel distribution.
The expanded plans were disclosed by Dangote Industries’ Group Vice President for Oil and Gas, Devakumar Edwin, during a visit by a delegation from the Republic of the Congo’s national oil company – SNPC
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Kenya also has an extensive pipeline network operated by the Kenya Pipeline Company (KPC), allowing refined products to move efficiently across the country and into neighbouring landlocked states.
Its position within the East African Community (EAC)—a market of more than 300 million people—further strengthens its appeal, while the project would revive Kenya’s ambitions of becoming a regional refining hub after the closure of its only refinery over a decade ago.
The significance of the Kenyan refinery extends well beyond East Africa.
Together with Dangote Industries’ planned 1.4 million barrels per day of refining capacity in Nigeria, the proposed 700,000-bpd refinery in Kenya would create a 2.1 million-bpd refining network stretching from West to East Africa.
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The twin hubs would position the conglomerate to supply refined petroleum products across much of sub-Saharan Africa while reducing the continent’s dependence on fuel imports from the Middle East, Europe and Asia
Today, much of East Africa relies on refined petroleum imports from the Middle East, India and Europe. A refinery in Kenya would allow Dangote to supply fuel much closer to end markets, reducing shipping distances, improving supply security and supporting the continent’s push to process more of its own crude.
The strategy also complements the objectives of the African Continental Free Trade Area (AfCFTA) by strengthening intra-African industrial capacity and reducing dependence on overseas refiners.
Dangote has repeatedly framed the company’s expansion as a continental rather than national project.
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“We are for Africa, not just Nigeria. Tell us what you need, and we will see how we can work together,” the Dangote Industries President and Chief Executive said.
If completed, the twin-refinery strategy would place Dangote at the centre of Africa’s energy transition, not away from fossil fuels, but away from dependence on imported refined products.
By linking West and East Africa through two mega-refineries, the group is positioning itself to become one of the continent’s most influential suppliers of transportation fuels while advancing a broader vision of African industrial self-sufficiency.
By Seyi Balogun
Data from Nigerian Upstream Petroleum Regulatory Commission (NUPRC) on latest production indicate that Nigeria’s daily oil production declined by four per cent in July 2026, falling to 1.67 million barrels per day (mbpd) from 1.74mbpd recorded in June, to the production above the 1.5mbpd OPEC quota for the third consecutive month in July.
According to the NUPRC data, the country produced 1.505mbpd of crude oil and 0.17mbpd of condensate during the month, bringing total daily production to 1.67mbpd.
Daily combined crude oil and condensate production peaked at 1.78mbpd during the month, while the lowest output stood at 1.57mbpd.
The July performance followed production levels of 1.70mbpd in May and 1.74mbpd in June. Earlier in the year, production stood at 1.663mbpd in April, 1.546mbpd in March, 1.483mbpd in February and 1.627mbpd in January.
The NUPRC attributed the July decline to operational challenges at the Erha and Akpo fields, which affected production during the period under review.
The regulator said the disruptions constrained production volumes and contributed significantly to the reduction in national output.
Despite the challenges, production operations across most other producing assets remained relatively stable, with operators implementing measures to maintain production efficiency and minimise the impact of operational constraints.
The latest figures indicate that although Nigeria continues to maintain production above its OPEC quota, operational disruptions at key producing assets remain a factor affecting overall output.
By Aliyu Musa
The Nigerian National Petroleum Company Limited (NNPC Ltd.) has welcomed the Federal Government’s signing of the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, describing it as a landmark reform that significantly enhances Nigeria’s competitiveness for deep offshore investment and strengthens the nation’s pathway towards achieving its 3 million barrels of oil per day (MMbopd) production ambition by 2030.
The new Order establishes a transparent, predictable and globally competitive fiscal framework for qualifying greenfield deep offshore developments. It provides the certainty required to unlock long-term capital, accelerate Final Investment Decisions (FIDs), and maximise value from Nigeria’s offshore resources.
The framework, which reinforces Nigeria’s position as one of the world’s attractive destinations for deep offshore oil and gas development, is expected to unlock over US$50 billion in new investments, including major projects starting with Bonga South-West which was approved in March 2026, and the Zabazaba and Owowo Deep Offshore projects. Bonga South West is expected to be the first FID on a Nigeria deepwater Production Sharing Contract asset since 2008.
Speaking on the development, the Group Chief Executive Officer of NNPC Ltd., Engr. Bashir Bayo Ojulari, described the Order as one of the most significant policy interventions for the upstream sector in recent years.
“This is a transformative reform that sends a strong signal to global investors that Nigeria is committed to providing a stable, competitive and investment-friendly environment for deep offshore development. Fiscal certainty is a critical driver of investment decisions, and this framework provides the additional clarity the industry has long sought.”
He added: “For NNPC Ltd., the Order aligns directly with our strategy of protecting our existing production base, accelerating near-term growth, and attracting new investment into high-value assets. It strengthens our confidence in achieving our strategic production ambition of 3 MMbopd while creating greater value for our shareholders and the Nigerian economy.”
The GCEO noted that recent reforms across the petroleum sector have already stimulated more than US$34 billion in new investment commitments. The Deep Offshore Incentives Order is expected to build on that momentum by enabling timely FIDs on strategic offshore developments.
The GCEO thanked President Bola Ahmed Tinubu, GCFR, for his relentless leadership and unwavering commitment to creating an enabling environment for investment and sustainable growth in Nigeria’s energy sector through several Presidential Executive Orders which have strengthened the nation’s oil and gas sector.
This milestone reinforces NNPC Limited’s commitment to driving sustainable production growth, attracting responsible investment, strengthening Nigeria’s energy security and delivering long-term value to the Federation.
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