Economy
Dangote Refinery Seeks Loans to Boost Production Capacity
By Adedapo Adesanya
The biggest crude oil refinery in Africa, Dangote Refinery, is seeking to raise capital to ramp up production at the 650,000 barrels per day facility in Lagos.
According to Financial Times, the refinery, operated by Africa’s richest man, Mr Aliko Dangote, is negotiating with a mix of commercial lenders, development banks, oil traders, and other key industry players to raise the necessary funds to ensure a stable and sustained crude oil supply for the refinery.
The $20 billion facility, which produces petrol, diesel, and other fuels, has not been able to operate at maximum capacity due to several limitations.
The refinery has been touted to change the country’s energy use by eliminating the need to import petroleum products.
Dangote Refinery, which began production earlier this year, is already producing 420,000 barrels per day and has set a new target to reach full capacity by mid-2025.
In September, the plant started producing jet fuel and naphtha, followed by petrol production in October.
However, financing challenges have led to delays in meeting previous targets.
It has also faced hindrances from the Nigerian National Petroleum Company (NNPC) Limited, the country’s state-owned oil corporation, which is supposed to supply a significant portion of the crude needed.
NNPC’s stake in the refinery has been reduced to 7.2 per cent after it failed to meet the payment schedule for a deal valued at $2.7 billion.
The state oil firm paid an initial $1 billion in 2021, but it has not been able to cover the remaining $1.76 billion, which was to be paid in crude supplies.
Dangote Industries has already procured crude from international suppliers in the US, and Brazil, and is exploring deals with African nations like Libya and Angola to meet its growing demand.
In recent meetings, Dangote sought assurances from President Bola Tinubu and Mele Kyari, the CEO of NNPC, to ensure a reliable supply of 365,000 barrels per day of crude, to be paid for in Nigeria’s increasingly devalued currency, the Naira.
In December 2023, the Africa Finance Corporation (AFC), a pan-African development bank already invested in the refinery, led a financing round to help the project get off the ground.
However, as the refinery’s production ramps up, Dangote is now faced with the challenge of securing additional funds to cover both crude procurement and the refinery’s operational costs, which could reach approximately $2 billion every 90 days for a minimum supply of 300,000 barrels per day.
With Nigeria’s weak currency, there have been worries that the refinery will face increased challenges.
One of the sources quoted by the publication said, “The refinery was built over budget, and the Naira, which is a major currency of future revenue, has devalued massively.”
However, Dangote said it remains committed to using the refinery to meet Nigeria’s entire demand for petrol, which he estimates at 30 to 35 million litres per day.
By Adedapo Adesanya
The National Insurance Commission has issued new guidelines for the collection, management, and administration of the Insurance Policyholders’ Protection Fund.
In a circular issued to all insurance institutions on Tuesday, the regulator also set May 31, 2026, as the deadline for insurers to submit their assessment returns for the 2025 financial year.
Recall that on August 5, 2025, President Bola Tinubu signed into law the Nigerian Insurance Industry Reform Act ( NIIRA 2025).
This landmark legislation repeals the Insurance Act 2003, and consolidates related provisions, ushering in a modern regulatory framework. It lays a strong foundation for sustainable growth and increased investment in the country’s insurance sector.
The commission said the guidelines were issued in exercise of its powers under the 2025 Act and other existing insurance laws and regulations to provide regulatory clarity, improve guidance, and ensure ease of compliance across the industry.
According to NAICOM, the guidelines establish a comprehensive structure for the operation of the IPPF, which serves as a statutory safety net to protect insurance policyholders in the event of distress or insolvency of a licensed insurer or reinsurer. The framework also provides direction on the reimbursement of loans by insurers and reinsurers.
NAICOM stated, “The guidelines ensure regulatory clarity, guidance and ease of compliance, as it provides a comprehensive regulatory framework for the collection, management, and administration of the Fund, which serves as a statutory safety net designed to protect insurance policyholders against distress and insolvency of a licensed insurer or reinsurer, including guidance for the reimbursement of loans by an insurer or reinsurer.
“Please be informed that the IPPF Assessment Returns in respect of the year 2025 shall be submitted to the Commission not later than 31st May 2026, while subsequent submissions shall be in line with Section 4.3 of the Guideline on Insurance Policyholders Protection Fund.”
By Adedapo Adesanya
The Dangote Refinery on Wednesday returned the petrol price to N1,200 per litre, less than 24 hours after it increased it by 5 per cent.
The private refinery had raised the ex-depot price by N75 on Tuesday, citing pressure from volatile global oil markets, but quickly brought it back to N1,200 per litre from N1,275 per litre.
The swift downward review is directly linked to a sharp drop in international crude prices. Brent crude has plunged to $95.05 per barrel, after a 13 per cent decline, while the US West Texas Intermediate (WTI) crude closed at $97.18, recording nearly a 14 per cent drop.
This development comes after US President Donald Trump announced a conditional two-week ceasefire with Iran, which eased fears of immediate supply disruptions in the global oil market.
“This will be a double-sided CEASEFIRE!” Trump said on social media, marking a sharp reversal from his earlier warning that “a whole civilisation will die tonight” if Iran failed to comply with US demands.
Iran’s Foreign Minister, Mr Abbas Araqchi, confirmed that the country would halt attacks provided strikes against Iran cease and transit through the Strait of Hormuz is coordinated by Iranian forces.
Despite the breakthrough, tensions remain elevated across the region, with several Gulf states reporting missile launches, drone activity, or issuing civil defence warnings.
While oil prices have fallen back below $100, they remain significantly elevated after surging by a record amount in March. Market analysts noted that regardless of how successful the ceasefire is, geopolitical risk related to the Strait of Hormuz is likely to remain elevated for the foreseeable future under the control of Iran.
By Adedapo Adesanya
Crude oil deliveries from the Nigerian National Petroleum Company (NNPC) Limited to the Dangote Petroleum Refinery doubled in March, boosting prospects for improved fuel availability.
This was revealed by the chief executive of Dangote Industries Limited, Mr Aliko Dangote, on Tuesday, when he received the Deputy Secretary-General of the United Nations, Mrs Amina Mohammed, at the industrial complex in Ibeju-Lekki, Lagos.
While speaking on feedstock supply, Mr Dangote commended the NNPC for increasing crude deliveries to the refinery in March, noting that volumes rose to 10 cargoes—six supplied in Naira and four in Dollars—to support domestic fuel availability, according to a statement by the Refinery.
“Last month, they gave us six cargoes for Naira and four cargoes for Dollars,” he said.
Despite the improvement, Mr Dangote noted that the supply remains below the 19 cargoes required for optimal operations, with the refinery continuing to bridge the gap through imports from the United States and other African producers.
He also expressed concern over the unwillingness of international oil companies operating in Nigeria to sell to the refinery, stating that their preference for selling crude to traders forces it to repurchase at higher costs, with broader implications for the economy.
Mr Dangote added that the refinery is seeking increased access to domestically priced crude under local currency arrangements as part of efforts to moderate fuel costs and enhance long-term energy and food security across the continent.
On her part, Mrs Mohammed underscored the strategic importance of Dangote Industries Limited -particularly Dangote Fertiliser Limited—in addressing Africa’s mounting food security challenges, while calling for stronger global partnerships to scale its impact.
Mrs Mohammed said the United Nations would prioritise amplifying scalable solutions capable of mitigating the continent’s food crisis, describing Dangote’s integrated industrial model as a critical pathway.
“I think the UN’s job here is to amplify and to put visibility on the possibilities of mitigating a food security crisis, and this is one of them,” she said. “I hope that when we go back, we can continue to engage partners and countries that should collaborate with Dangote Industries.”
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