Dangote refinery in Nigeria

Aliko Dangote's $20 billion refinery in Nigeria aims to transform the country's oil sector by refining 650,000 barrels of crude oil daily, reducing reliance on imported products. Despite its potential, the refinery faces regulatory challenges, including accusations from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) of monopolistic practices. The NMDPRA's chief has claimed Dangote is pressuring the agency to halt petrol import licenses, although experts argue that Nigeria should not stop imports until more refineries are operational. Additionally, Dangote has struggled with securing crude supplies and has turned to international markets, leading to tensions with the Nigerian National Petroleum Corporation (NNPC), which recently reduced its stake in the refinery. President Bola Tinubu has directed the NNPC to sell crude to the refinery in local currency, aiming to support domestic production. As the refinery's operational challenges unfold, the potential benefits for Nigeria's economy remain at risk.