Dangote Faces Fresh Competition as 3 Modular Refineries Supply 648,000 Litres of Diesel Daily
- Nigeria's diesel market shifts as modular refineries supply 648,000 litres of AGO daily
- Edo Refinery leads in efficiency, achieving 91.66% capacity utilisation and supplying all output locally
- Despite shutdowns at some refineries, the modular sector demonstrates potential to reduce reliance on imports
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Nigeria's diesel market is witnessing a gradual shift as three modular refineries ramp up production, supplying a combined 648,000 litres of Automotive Gas Oil (AGO) daily and emerging as new competitors to larger refining players, including Dangote Refinery.
According to performance data released by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and reviewed by Petroleumprice.ng, the country's modular refining segment maintained steady output in May 2026 despite operational setbacks at some facilities.
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Edo Refinery leads in efficiency
Among the three active modular refineries, Edo Refinery posted the highest capacity utilisation rate, operating at an impressive 91.66 per cent during the month.
The refinery produced an average of 80,000 litres of diesel daily, with all of its output supplied to the domestic market. Its ability to channel its entire production locally positioned it as the most efficiently utilised modular refinery in Nigeria during the period under review.
Aradel tops production volumes
While Edo Refinery led in efficiency, Aradel Refinery emerged as the biggest producer.
The facility operated at 62.94 per cent capacity utilisation and produced approximately 341,000 litres of diesel per day. Out of this volume, 326,000 litres were sold within Nigeria, making Aradel the single largest contributor to local diesel supply among modular refineries.
Its strong output underscores the increasing importance of smaller refining facilities in bridging domestic fuel supply gaps.
Waltersmith maintains steady operations
Waltersmith Refinery also recorded a strong performance in May.
The refinery operated at 65.31 per cent capacity utilisation, producing about 296,000 litres of diesel daily. Of this amount, 242,000 litres were supplied to the Nigerian market, reinforcing its role as one of the country's most reliable modular refining operators.
Shutdowns expose sector challenges
Despite the encouraging performance of the three operating plants, the sector continues to grapple with challenges.
Both OPAC Refinery and Duport Refinery remained shut throughout May, highlighting lingering operational and structural issues affecting parts of Nigeria's modular refining industry.
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Nevertheless, the combined daily supply of 648,000 litres from Edo, Aradel and Waltersmith signals the growing influence of modular refineries in the downstream market.
As competition intensifies and Nigeria seeks to reduce dependence on imported petroleum products, these smaller refineries are increasingly positioning themselves as credible alternatives and complementary players to larger operators such as Dangote Refinery.
Dangote Refinery crashes diesel prices by N100
Legit.ng earlier also highlighted facts about Dangote Refinery's recent decision to reduce its diesel gantry price by N100, bringing the new price to N1,500 per litre amid competitive pressures in the Nigerian market.
This remarkable adjustment not only reflects fluctuations in global crude oil prices but also presents a vital opportunity for manufacturers and transport companies to alleviate rising operational costs.
As the battle for market dominance intensifies, consumers may find themselves reaping the benefits, but the ongoing volatility in crude oil prices keeps the outcome uncertain.
Source: Legit.ng
