Business
Dangote Refinery Faces Two New Challenges Amid PENGASSAN’s Strike; Details Emerge
The trouble at Dangote Refinery has reportedly deepened as its petrol-producing unit has shut down
Amid the ongoing industrial dispute against Dangote Refinery by the Petroleum and Natural Gas Senior Association of Nigeria (PENGASSAN), the mega refinery has run into new challenges.
Also, data shows that the refinery is facing crude oil challenges as intakes slowed in September.
The refinery’s challenges are also compounded by industrial action as oil unions protest the sack of 800 Nigerian workers at the facility
Africa’s largest refinery is reportedly grappling with operational challenges as crude oil inflows drop sharply in September 2025.
Also, the facility’s petrol-producing unit and residual fluid catalytic cracker (RFCC) have allegedly broken down.
According to the petroleum product-tracking platform, PetroleumPriceNG, the failure to issue new pro forma invoices has triggered hoarding at the refinery, leading to higher petrol prices.
Recall that Legit.ng reported that the 650,000 bpd-capacity refinery increased its ex-depot prices for petrol to N860 per litre, up from N825.
Experts attributed the increase, which also affected other depot operators, to a rise in crude prices.
Meanwhile, crude intake into the mega refinery dropped sharply this month. Data from Vortexa shows that inflows dropped to about 250,000 barrels per day.
Energy policy analysts warn that if the scenario continues, it will be the lowest crude supply to the Lekk-based plant since September last year, when Fitch downgraded it and banks tightened finance lines, shrinking its ability to purchase crude.
With less feedstock coming in, the facility cannot run at optimal capacity, which is currently estimated at 500,000 barrels per day. Also, it shows Nigeria’s vulnerability as the world’s largest single-train refinery struggles to maintain stable production.
As crude supply dips, the RFCC has also gone offline for maintenance, with industry watchers speculating that the unit may not resume full operations until early October.
Meanwhile, the refinery has redirected more low-sulphur straight-run fuel into the export market. Data shows that exports hit 320,000 barrels per day this month, the refinery’s highest cargo shipment on record.
The shift may keep revenue coming, but it starves the Nigerian and African market of the much-needed petroleum product supply.
Experts say product inflows from other regions into West Africa have slowed to less than one million tonnes of petrol and blending components in September. The figure is reportedly below the year-to-date average and marks the weakest September arrival on record.
This means West Africa is receiving fewer petrol imports as Dangote struggles to stabilise operations. The squeeze increases the refinery’s dominance as its failure could have multiple ripple effects in the petroleum product market.
The production challenges have affected the downstream sector. In early September, the massive plant halted sales, promising to resume allocation later in the month.
Already, the delay has created panic, as marketers holding old stocks hoard them, selling at premium rates.
Reports say depot prices surged above Dangote’s N820 per litre ex-depot price of N820 to N870, while Wosbab Lagos recorded the highest daily increase at almost three per cent.
The situation at Dangote demonstrates that sheer size does not guarantee stability. The refinery’s challenges highlight Nigeria’s precarious balance between energy security and vulnerability to global oil volatility.
Every disruption quickly translates into inflationary pressures within the downstream market. For Dangote, the immediate priorities are clear: restore RFCC operations and ensure timely PFI issuance.
For Nigeria, the lesson is more profound: without enhanced upstream output and improved policy coordination, the aspiration of affordable, dependable petrol may remain elusive, even with Africa’s largest refinery.
The amount spent on the importation of refined petroleum products has dropped sharply by 54 per cent in two years, falling from $14.58bn in the first nine months of 2023 to $6.71bn in the corresponding period of 2025, according to data from the Central Bank of Nigeria’s Balance of Payments report.
It declined from $14.58bn in the first nine months of 2023 to $11.38bn in the corresponding period of 2024, before dropping further to $6.71bn within nine months of 2025.
This is according to a comparative analysis of the 2023 and 2024 full-year and the Q3 2025 Balance of Payments presentation, released by the CBN and reviewed by The PUNCH on Monday.
The figures obtained from the CBN documents showed a sustained moderation in fuel importation, with import bills declining year-on-year over the period under review.
The data revealed that Nigeria spent $11.38bn on refined petroleum product imports between January and September 2024, representing a $3.20bn or 21.9 per cent decline compared with $14.58bn recorded in the same period of 2023, pointing to a sharp contraction in foreign exchange outflows associated with refined petroleum products.
The downward trend accelerated in 2025, with fuel imports dropping further by $4.67bn, or 41 per cent, to $6.71bn within the first nine months of the year, marking the steepest year-on-year contraction in the period analysed.
Overall, the figures show that Nigeria spent $7.87bn less on refined fuel imports in the first nine months of 2025 than it did in the corresponding period of 2023, underscoring a significant easing of foreign exchange outflows linked to petroleum product imports.
The CBN data also showed a 41 per cent year-on-year decline in refined petroleum product imports by the third quarter of 2025, signalling early signs of import substitution as new and rehabilitated refineries scale up operations.
The PUNCH reports that Nigeria’s reduced foreign exchange spending on imports comes against the backdrop of a series of structural reforms and market adjustments aimed at easing pressure on the country’s external reserves and stabilising the naira.
For decades, Nigeria relied heavily on imports, particularly refined petroleum products, due to limited domestic productive capacity, weak industrial output, and chronic underinvestment in critical infrastructure. This dependence made import financing one of the largest drains on foreign exchange earnings.
The removal of petrol subsidies in 2023 marked a major turning point, as higher pump prices curbed fuel consumption and reduced arbitrage-driven demand. The policy shift, combined with stricter foreign exchange management by the Central Bank of Nigeria, helped moderate import volumes and limit speculative FX demand linked to fuel importation.
Another key factor has been the gradual expansion of domestic supply, especially in the downstream oil sector. Energy experts also say competition within the market has intensified as marketers struggle to compete with supply from the $20bn Dangote Petroleum Refinery in Lekki.
Despite the decline, Nigerian fuel-importing marketers still spent an estimated $6.71bn importing refined products during the review period, underscoring the country’s continued dependence on foreign fuel supplies, despite repeated assurances that domestic refining would significantly curb imports.
Although the quarterly fuel import bill declined consistently, the data highlighted persistent structural weaknesses in the downstream oil sector.
Professional speak
Commenting, renowned energy economist Professor Wumi Iledare, noted that Nigeria’s reliance on imported petrol has declined but has not been eliminated. He also warned against claims that fuel importation has ended following increased domestic supply from the Dangote Petroleum Refinery.
In a personal note titled “Dangote Refinery, Petrol Imports, and Market Reality,” Iledare said recent assertions that Nigeria no longer imports petrol reflect “understandable optimism” but overstate the economic reality of the downstream oil market.
“Recent claims that petrol importation into Nigeria has ended because Dangote Refinery now meets domestic demand reflect understandable optimism, but they overstate economic reality.
“Dangote Refinery has significantly improved domestic supply conditions and reduced Nigeria’s marginal reliance on imported petrol. However, neither Dangote Refinery nor petroleum marketers determine national supply outcomes,” he said.
Iledare, who also serves as Executive Director of the Emmanuel Egbogah Foundation, Abuja, acknowledged that the Dangote Refinery has significantly improved domestic supply conditions and reduced Nigeria’s marginal dependence on imported petrol
In the past two decades, Nigeria’s skyline has become an unexpected stage for a drastic rise in private aviation, as reported by Nairametrics
What was once a rare symbol of elite mobility has grown into a fleet of well over a hundred business jets crisscrossing domestic and international routes.
According to industry figures, the number of private business aircraft operating in the country climbed from just 44 in 2005 to 157 by 2024, a surge of more than 350% that reflects both expanding wealth and shifting travel habits among the nation’s affluent.
Flying a private jet is not just about convenience; it’s about connecting business faster, offering access where commercial airlines cannot, flexibility, and providing a level of service that combines luxury, reliability, and exclusivity.
These jets allow business moguls, musicians, athletes, and other high-net-worth individuals to move quickly, either for work or leisure.
Flying a private jet is costly; flights start at around $3,000 and above, depending on the aircraft, distance, and level of luxury, making these jets accessible to only a select group of Nigeria’s economic elite.
The private jet business in Nigeria is built on relationships, trust, and discretion. Most clients come through referrals, with operators rarely advertising broadly.
Every flight is a careful balance of strict safety standards, experienced crews, and regulatory compliance from air operator certificates to international operational approvals.
This article explores the individuals driving Nigeria’s private jet market, investing heavily in one of the most elite forms of personal transport.
Here are the owners of commercial private jet companies in Nigeria
11. Yemi MacGregor- Stargate Jets Services Limited
10. Segun Demuren- Founder, Evergreen Apple Nigeria
9. Chukwuerika Achum- Founder, Falcon Aerospace Limited
8. Sam Iwuajoku- Founder, Quits Aviation Services and CEO ExecuJet Aviation Nigeria
7. Atedo Peterside- Founder, Anap Business Jets Limited
6. Samuel Salihu – CEO Private Business Jet Charter
5. Wisdom Ntoto – CEO Jetlyfe Aviation Ltd
4. Captain Ahmed Borodo- CEO Flybird Aviation
3. Dr. Ernest Azudialu Obiejesi -CEO Nesto Aviation Services Limited
2. Captain Edward Boyo –CEO Landover / Overland Airways
1. Dr. Elizabeth Jack-Rich- Founder, Elin Group Limited
What is the Dollar to Naira Exchange rate at the black market, also known as the parallel market (Aboki fx)?
You can swap your dollar for Naira at these rates.
How much is a dollar to naira today in the black market?
The exchange rate for a dollar to naira at Lagos Parallel Market (Black Market) players buy a dollar for N1490 and sell at N1505 on Sunday, 11th January 2026 according to sources at Bureau De Change (BDC).
Black Market Exchange Rate Today 12th January, 2026
Buying Rate N1485
Selling Rate N1500
The exchange rate between the US dollar (USD) and the Nigerian naira (NGN) which rate we have given above; is a topic of high constant interest for people who are Nigerian and businesses and policymakers in Nigeria.
This rate of dollars to naira exchange rate influences not only the cost of imported goods but also the cost of travel, international education, and even local prices of certain commodities.
Please note that the Central Bank of Nigeria (CBN) does not recognize the parallel market (black market), as it has directed individuals who want to engage in Forex to approach their respective banks.
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