Africa’s richest man begins oil production to power his mega refinery

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By Suleman Chitera

DANGOTE MAKES HISTORY

Lagos — has taken a bold and historic step toward energy dominance, as the officially begins preliminary crude oil production from its Niger Delta assets.

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The move marks a major shift in Africa’s energy landscape, positioning Dangote not only as the continent’s leading industrialist but now as an emerging upstream oil producer.

Initial output from the Kalaekule field, located under Oil Mining Lease 72, currently stands at 4,500 barrels per day. Production is, however, expected to surge rapidly to 15,000 barrels per day in the coming weeks as operations scale up.

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Dangote controls a dominant 85 percent stake in the upstream venture, while the (NNPC) holds the remaining share.

The oil fields, once highly productive in the 1990s before declining, have been revived following Dangote’s strategic acquisition in 2015. The development comes after years of supply challenges and disputes that affected feedstock availability for his refinery.

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This latest milestone brings Dangote closer to achieving full vertical integration — producing crude oil to directly supply his world-class 650,000 barrels-per-day refinery, widely regarded as Africa’s largest.

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Industry analysts say the move could significantly reshape Nigeria’s oil sector by reducing reliance on external crude suppliers, stabilizing refinery operations, and strengthening domestic energy security.

With this development, Dangote is no longer just refining petroleum — he is now firmly in control of the entire value chain.

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More updates are expected as production scales toward full capacity, with far-reaching implications for Nigeria and the wider African energy market.

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