The closure of the Strait of Hormuz due to the US-Israel conflict with Iran has impacted fuel supply chains globally. However, Nigeria’s coastal refinery, owned by Aliko Dangote, is seizing the opportunity to increase exports. Operating at full capacity of 650,000 barrels per day, the refinery is now supplying fuel to regions across Africa and even extending shipments to Europe and Asia.
Cargoes from the Lagos-based refinery have reached markets spanning from Senegal to Mozambique, with additional deliveries reaching Europe, including the Netherlands and the United Kingdom, as well as parts of Asia. The project, backed by Chinese industrial capacity and Indian engineering oversight, has enabled rapid delivery and large-scale operations compared to Western contractors, as noted in a Business Insider Africa report.
The refinery project has seen the involvement of over eight Chinese firms, providing crucial industrial support for its success. India’s contribution has primarily focused on engineering management and project continuity. Recently, the Dangote Group renewed a $350 million contract with Engineers India Ltd (EIL) to aid in the refinery’s expansion and petrochemicals complex.
Engineers India Ltd (EIL) will serve as the Project Management Consultant and Engineering, Procurement, and Construction Management consultant, continuing its role from the project’s initial phase commissioned in 2024. During peak construction, the project employed over 30,000 Nigerians, alongside 6,400 Indian and 3,250 Chinese workers, showcasing the project’s scale and technical requirements.
The project also aimed to build local technical capacity, with about 11,000 trained Indian workers engaged in the process. This initiative drew attention from regional stakeholders, emphasizing the need for global expertise due to the refinery’s complexity. Nigerian graduates were sent to India for training in refinery operations, maintenance, and production between 2016 and 2018, as part of efforts to enhance local technical skills.
Indian engineer Devakumar V. G. Edwin, who previously served as Vice President for Oil and Gas at Dangote Industries, played a pivotal role in the technical development and operational launch of the refinery. The impact of the refinery is evident as Nigeria transitioned to being a net exporter of refined petroleum products in March for the first time, marking a significant shift from historical import dependence.
