Dangote Group vows refinery expansion despite tariff delay

Dangote Group, founded by Nigerian billionaire Aliko Dangote, said government delays on a 15 percent fuel import duty will not derail its refinery expansion plans. The group remains committed to boosting capacity to 1.4 million barrels per day, more than double its current output.

Anthony Chiejina, the Group’s Chief Branding and Communications Officer, said the company’s roadmap remains unchanged. “The deferment cannot stop the effort to upgrade capacity. We are planning for tomorrow, not today,” he said.

Expansion plans remain firm 

Last month, Dangote confirmed the new plan to scale the refinery from 650,000 barrels per day to 1.4 million barrels, which would make it the largest refinery of its kind once completed. 

Chiejina said the expansion is a long-term move aimed at strengthening domestic supply and positioning the company for exports. He dismissed concerns that the tariff delay could weaken investor interest or slow market entry. “The plan is for the future, not immediate gains,” he said.

Government postpones fuel import duty

The Federal Government recently approved a shift in the start date of the fuel import duty from 2025 to the first quarter of 2026. The request, submitted by Federal Inland Revenue Service Chairman Zacch Adedeji, cited the need to prevent supply disruptions and ensure local refining capacity is ready. The duty, approved on Oct. 21, 2025, was designed to encourage local refining, stabilize pricing, and create fair competition between imports and domestic production. 

At an industry conference in Abuja, Joseph Tolorunse of the Nigerian Midstream and Downstream Petroleum Regulatory Authority said the government stepped back after public pushback. He argued the measure could have lifted prices in the short term but boosted jobs, output and GDP over time.

Energy analyst Henry Adigun said the tariff would only make sense once Nigeria has enough local production to reduce its reliance on imports. “If you still depend on imported fuel, a tariff will only raise costs,” he said. Meanwhile, Dangote Refinery has raised the ex-gantry price of cooking gas from N715 (0.5) to N800 (0.55) per kilogram, its first upward adjustment this year.

Growing footprint

Active in 17 African countries across cement, sugar, refining, and food, Dangote Group has reshaped Nigeria’s downstream sector with its flagship refinery. Earlier this month, it confirmed it will maintain petrol and diesel supplies through the Christmas and New Year season.