By Naija247news Business Desk – The Dangote Refinery has clarified that the recent reduction in crude oil inflows to its 650,000-barrel-per-day facility is a strategic market response to volatile global prices — not an indication of operational challenges or shutdowns.
During a media tour on Friday, company executives sought to dispel speculations of production outages or technical setbacks, emphasizing that output adjustments were driven by economic considerations.
Vice President of Dangote Industries Limited, Edwin Devakumar, explained that the refinery’s crude purchases are constantly adjusted in response to market movements and inventory optimization strategies.
“No factory operates at 100 percent capacity every single day,” Devakumar said. “What matters is whether any issue impacts final production — and ours has not.”
According to Devakumar, the $20 billion refinery — the largest single-train plant in the world — is designed for turnaround maintenance every five years, a significant improvement over Nigeria’s ageing state-owned refineries that require frequent shutdowns.
While Reuters reported that the refinery’s gasoline unit has experienced four maintenance-related shutdowns this year, Devakumar insisted these were standard operational procedures and not indicative of deeper issues.
Sabotage Attempts and Internal Security Concerns
In a striking revelation, Devakumar confirmed that the company had documented 22 cases of sabotage since operations began — including attempts to start fires and tamper with control equipment.
“We recorded attempted fire incidents — we have the dates and the specific units,” he said. “Some individuals tried to manipulate instruments, but the system automatically overruled them.”
He credited the refinery’s advanced fire suppression and automated control systems for preventing any significant damage.
Industry analysts note that sabotage is uncommon among Nigeria’s few functional private refineries, contrasting sharply with the mothballed state-owned refineries in Port Harcourt, Warri, and Kaduna, which have remained idle for years due to corruption and mismanagement.
Market Context and Global Impact
Dangote Refinery’s operational strategy comes amid fluctuating Brent crude prices, which have hovered around $90 per barrel in recent weeks, tightening margins for refiners worldwide.
Analysts say the company’s decision to modulate crude intake demonstrates a market-responsive approach typical of globally competitive refiners, rather than evidence of instability.
The facility — which began operations earlier this year — is expected to transform Nigeria from a net importer to a net exporter of refined petroleum products, reshaping energy trade across West Africa.
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Reporting by Joshua Chinonye in Lagos, Nigeria.
