The Dangote Petroleum and Petrochemicals is emerging as a major driver of NIGERIA improving economic outlook, follows the country’s sovereign credit rating upgrade by S & P Global Ratings.
In its latest assessment, S & P upgraded Nigeria’s long – term foreign and local currency sovereign credit rating to “B” from “B – , citing stronger economic growth, improves external balances, rising oil production, and expanded domestic refining capacity as key support on the country recovery.
The global rating agency the operational ramp up of the 650,000 barrels per day Dangote Petroleum Refinery and Petrochemicals as a major contributor to Nigeria’s improving balance of payments position and broader economic resilience.
Accept to S & P, the refinery’s full capacity operations are helping to strengthen Nigeria’s current account for surplus, reduce dependence on imported refined petroleum products, and improve foreign exchange liquidity.
“Significant rating capacity is now also online; Dangote Industries Limited’s large refinery and petrochemicals complex has ramps up to its maximum capacity of 650,000 barrels per day,” the report stated.
S & P projected that Nigeria’s current account surplus would improve to 5.8 per cent of GDP in 2026 from 4.8 per cent in 2025 supported by increased domestic refining and hydrocarbon.
The report noted that the refinery is helping to ensure the availability to refined fuel, gas, fertilizer for domestic market, while also providing buffer against global didtributed triggered by ongoing geopolitical tensions in the Middle East.
The agency further stated that Nigeria’s improving external position has a supporter by reduced fuel Importation dependence, the removable of the fuel subsidies, exchange rate liberation and higher oil production.
Forever exchange reserve according to S & P, have significantly risen from about $33 billion on 2023 to nearly $50 billion by early 2026, added b9 lower import demand for refined petroleum products following the commencement of operations at Dangote Refinery.
The report also highlights the refinery broader role in supporting Africa’s Industrialisation ambitions, that Nigeria is transitioning from being a primarily a crude oil to emerging producer and exporter of refined petroleum products.
S & P disclosed that Dangote Industries has already unveiled plans to undertake feasibility studies aimed at expanding refining capacity to about 1.4 million barrels per day from the current 650,000 barrels per day.
The agency said the planned expansion, alongside with other rehabilitation of other local refineries, could further strengthen Nigeria’s economy and deliver additional gains to the country’s balance of payments position over the next few years.
While acknowledging that global crude oil prices and market driving pricing continue to influence domestic fuel costs, S & P maintained that the increased local capacity provides Nigeria with greater security and reduced exposure to external supply shocks.
The report also linked Nigeria’s macroeconomic outlook to reform undertaken since 2023, including exchange rate liberation, fiscal reforms, higher petroleum revenue remittances, and efforts to improve oil productions through enhance security in Niger Delta.
S & P said Nigeria’s economic growth is expected to remain firm despite inflationary pressures with reforms continuing to support investor confidence and non – oil sector expansion. The stable outlook according to the agency, reflects a balance between Nigeria’s improving external position and continuing structural challenge such as narrow tax base, high inflation, and low formal employment levels.
