Inefficient refineries should be closed – Dangote CEO

The Managing Director/Chief Executive Officer of the Dangote Petroleum Refinery, David Bird, has said the global oil and gas industry is undergoing a structural shift that will increasingly favour modern, highly efficient refining systems, arguing that older and less efficient refineries need to close down to help the planet.

He made the submission in Lagos while addressing newsmen on the sidelines of the ongoing conference of the Nigerian Association of Energy Economics, where industry stakeholders discussed the future of energy transition, refining capacity, and Africa’s role in global energy security.

According to him, the refining sector is already evolving, with stronger emphasis on technology and cleaner fuel standards such as Euro 5 and Euro 6, which he said are reshaping investment decisions globally.

Bird maintained that while all refining assets have historically played a role in global energy supply, the next phase of development will reward efficiency and penalise outdated infrastructure that cannot meet modern benchmarks.

He linked this transition directly to the need for continued reinvestment in the oil and gas value chain, stressing that energy efficiency gains must be prioritised across all levels of production.

The MD emphasised that modern refineries like the Dangote refinery represent the direction the industry must move towards if it is to remain relevant and environmentally sustainable in the long term. “I’m incredibly proud of being part of the world’s youngest, most modern, most energy-efficient, most automated, most data-rich refinery,” he said.

He added that the quality of refined products being produced today is aligned with global environmental expectations, noting that cleaner fuels are increasingly becoming the standard across major markets. Bird said it will be good for the planet if his refinery’s cleaner fuels lead to older refineries shutting down.

“And whatever anyone’s view is on the outlook for our product, which is clean Euro 5, Euro 6 fuels, if at the very least that results in older, smaller, less efficient refineries closing down, then that is a good thing for the planet, because that improves the overall energy efficiency of the refining population,” he said.

The refinery executive further argued that the oil and gas value chain must continue to attract investment in modern infrastructure, insisting that technological upgrades are no longer optional but necessary for competitiveness and environmental compliance.

“So the continued reinvestment in the oil and gas value chain, using best available technology, and allowing that energy efficiency improvements to be brought to bear, is an imperative,” he added.

He also expressed strong confidence in the Dangote refinery’s operational status, describing it as a benchmark facility not only in Africa but globally, with advanced systems that place it among the most modern refining complexes in the world. “I support the fact that Dangote refinery is now the world’s youngest, most modern refinery in the world, right here in Nigeria,” he boasted.

Bird’s remarks are likely to spark further debate within the global energy industry, particularly among operators of older refineries facing rising pressure to upgrade infrastructure or risk a gradual phase-out as environmental and efficiency standards tighten across markets.

His comments come amid claims by former President Olusegun Obasanjo that the Port Harcourt, Warri, and Kaduna refineries will never work again. The PidomNigeria reports that many refineries shut down in Europe when the 650,000-barrel-per-day Dangote refinery began operations in 2024.

Now at its full capacity, the facility is planning to upgrade to 1.4 million barrels per day in the next three years. On operations, Bird disclosed that the refinery is currently running at full capacity following maintenance work carried out earlier in the year, adding that production is sufficient to meet domestic demand for petrol, diesel, and jet fuel.

“So right now we’re at full capacity. We are absolutely thrilled to be at full capacity after a period of maintenance in December and January. And despite that maintenance, we continued to supply Nigeria through the festive season.

“And there was no fuel scarcity and no fuel queues during Christmas. But now we’re running at full capacity, 650,000 barrels a day, more than meeting the country’s demands, not only of PMS but obviously of diesel and jet. And any surplus of that is getting exported.”

He also said the refinery has begun exporting surplus products to other African countries and international buyers, noting that exports have reached more than 11 African countries.

“Alhaji Aliko Dangote is absolutely unequivocal that it is Africa first. And we will continue to export our product in surplus to Nigeria’s requirements and to our neighbouring African countries. And we have done that to more than 11 African countries to date since the war began,” he stated.

On the broader economic debate around fuel pricing and subsidy suggestions, he said the issue of cushioning the impact of rising costs of fuel is a government policy decision, noting that the world is currently facing a wider cost-of-living crisis beyond fuel alone.