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Published April 29, 2026businesscementeconomy

Inefficient refineries should be closed – Dangote CEO

Dangote Refinery's CEO argues that older, inefficient refineries must close to favor modern systems, improve energy efficiency, and benefit the planet.

Source-backed market reading focused on the local industrial developments, project signals, and operating consequences that are actually worth tracking.

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Managing Director/Chief Executive Officer of Dangote Petroleum Refinery, David Bird. Credit: enterpriseceo.africa 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.

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historically played a role in global energy supply, the next phase of development will reward efficiency and penalise outdated infrastructure that cannot meet modern benchmarks.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 PUNCH 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.

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Inefficient refineries should be closed – Dangote CEO

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Document: Punch Nigeria Business RSS · Source: Punch Nigeria Business RSS

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