The management of the Dangote Refinery has dismissed reports that it cut crude oil purchases by half due to frequent facility breakdowns, explaining that the move was a planned adjustment in response to global crude price fluctuations.
Reports earlier this week suggested that the 650,000-barrel-per-day Lagos-based refinery had reduced its crude intake to fewer than 300,000 barrels per day, citing tanker-tracking data and allocation lists. The reports also claimed that the refinery’s crude inflow was down by more than 50 percent from its July peak, and questioned its ability to sustain operations heading into 2026.
According to industry monitoring group IIR, the refinery’s residue fluid catalytic cracker unit was scheduled to restart this week after being offline since late August, though major work allegedly remained on the petrol-making unit, which could face another shutdown in January.
However, Devakumar Edwin, Vice President of Dangote Industries Limited, strongly refuted the claims during a facility tour with King Bubaraye Dakolo, Chairman of the Bayelsa State Traditional Rulers Council, and other dignitaries.
“No factory runs at 100 percent every day without issues. What matters is whether any problem affects final production,” Edwin said.
“Our refinery adjusts crude purchases based on price movements and inventory needs. The plant is designed for turnaround maintenance every five years, unlike older refineries that require frequent shutdowns.”
Edwin also addressed recent reports linking the refinery’s internal reorganisation to a dispute with the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), stressing that the restructuring stemmed from security concerns, not labour disagreements.
He revealed that the refinery had recorded 22 incidents of sabotage since operations began, prompting management to overhaul staffing and tighten internal controls.
“We’ve faced repeated sabotage attempts. People doubted the refinery would even start operations, but here we are. Our reorganisation was to protect the plant, not because of PENGASSAN,” he explained. “We have detailed records of every sabotage incident, including dates, affected units, and locations, all captured by our master control system.”
Edwin added that the refinery’s ultra-modern safety and control systems helped prevent major damage from sabotage attempts.
“When someone tries to tamper with valves or instruments, the system automatically overrides the action. Even when fires are attempted, our fire protection systems activate immediately,” he said.
He maintained that the company’s decision to restructure its workforce — which the refinery previously described as a “small number” of layoffs, though PENGASSAN claimed over 800 were affected — was solely to enhance security and operational efficiency.
“After investigations, we realised the refinery could be compromised from within. That’s why we acted quickly. It had nothing to do with PENGASSAN,” Edwin concluded.
The $20 billion Dangote Refinery, Africa’s largest, continues to fine-tune operations as it ramps up toward full capacity, amid fluctuating global oil prices and scrutiny over its performance.
