(Ecofin Agency) - Operational since January 2024, Dangote Refinery has been compelled to rely on crude oil imports due to insufficient deliveries from the Nigerian National Petroleum Corporation (NNPC).

Nigerian billionaire Aliko Dangote announced on July 20 that his oil refinery plans to reach 85% of its production capacity by the end of the year, targeting 550,000 barrels per day (bpd).

"The refinery, currently operating at around 50% of its total capacity of 650,000 bpd, intends to start producing gasoline from August, which will help increase its capacity," he stated during a visit to the facility located in the outskirts of Lagos.

Dangote also highlighted that the refinery needs to boost its crude imports due to inadequate domestic supplies. "The refinery has received only five crude oil shipments from the NNPC since it began production earlier this year, instead of the expected fifteen. That's why we've purchased Brazilian and American crude," he explained.

The refinery, built with an investment of $20 billion, had already secured a supply agreement with French group TotalEnergies in May, after launching a tender to find suppliers capable of providing 2 million barrels of West Texas Intermediate (WTI) crude per month for a year starting in July.