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Dangote Refinery Raises Capacity to 700,000 Bpd As Nigeria Power Sector Contracts
Energy capacity is expanding unevenly
On August 31, Nigeria’s National Bureau of Statistics reported that oil refining grew 43.94% year on year in Q2 2026, the sector’s strongest quarterly expansion in the rebased series. Dangote Petroleum Refinery raised crude distillation capacity from 650,000 barrels per day to 700,000 barrels per day after maintenance and expansion work completed in February. Between April and June, 53.7 million barrels of crude were supplied to local refineries; Dangote required 63 million barrels and ultimately accepted 52.6 million barrels. Refined products are increasingly being shipped to markets in Europe, Africa and Asia.
On August 31, a Federal High Court in Lagos issued an interim injunction preventing NMDPRA from suspending product loading and truck-out operations at the refinery, and from entering, sealing, shutting down, inspecting, supervising or otherwise interfering with the facility pending further proceedings. The dispute includes the question of whether the regulator can exercise oversight over operations inside a free zone. The court referred to a March 2 letter from the Attorney-General of the Federation stating that NMDPRA was not entitled to exercise regulatory powers over free-zone operations.
On September 1, NBS data showed that Nigeria’s electricity, gas, steam and air-conditioning supply sector contracted 10.63% year on year in real terms in Q2, following a 15.30% contraction in Q1. The wider economy grew 4.43% in real terms during the quarter. The sector’s nominal value rose to ₦1.26 trillion from ₦324.83 billion in Q1, while real output continued to decline. Generation, transmission, gas supply, ageing infrastructure and liquidity remain cited constraints.
Nomba and Synafare announced on September 1 a ₦2 billion commitment to finance solar equipment for 300 Nigerian SMEs. The programme is based on more than a year of direct financing for businesses acquiring renewable-energy equipment. The financing is aimed at reducing the upfront cost that keeps smaller firms from switching to solar power.
Capital and labour are being repositioned
On August 31, Nigeria’s finance and insurance sector recorded 9.29% real growth in Q2 2026, down from 16.13% in Q2 2025. Banks and insurers had completed recapitalisation programmes that raised more than ₦5.3 trillion: banks raised ₦4.61 trillion before the March 31 deadline, while the insurance industry raised at least ₦720 billion. Financial institutions accounted for 87.22% of sector output and insurance 12.78%. The sector contributed 4.32% of nominal GDP and 3.37% of real GDP in Q2.
On August 31, PZ Cussons Nigeria reported ₦260.46 billion in revenue for the financial year ended May 31, 2026, up 22% from ₦212.63 billion a year earlier. Recurring operating profit rose 117% to ₦37.1 billion, profit after tax reached ₦45.2 billion, and total equity turned positive at ₦66.6 billion from negative equity of ₦17.3 billion. The board proposed a ₦2.50 dividend per share, subject to shareholder approval on October 28.
On August 31, Nigeria’s NGX All-Share Index rose 1.20% to 244,199.39 points, while market capitalisation increased by ₦1.91 trillion to ₦157.74 trillion. The year-to-date return reached 56.93%; 43 stocks gained and 16 declined. Banking stocks led the session, with the Banking Index up 3.11%, after FTSE Russell confirmed Nigeria’s reclassification from “Unclassified” to “Frontier Market” status.
On August 31, the Federal Government launched the “Hire from Nigeria” campaign, targeting one million export-linked jobs over five years by connecting Nigerian workers with international employers while they remain in Nigeria. The government said 35,000 people would be trained over six months through the Digital Technology Academy, with certification support from Coursera, AWS, Microsoft and Huawei. The campaign is linked to the 3 Million Technical Talent programme and the National Talent Export Programme.
On August 31, Voltaa Mobility launched a Lagos-based application combining chauffeur-driven electric rides, parcel delivery and interstate commercial truck rentals. The platform includes GPS tracking, an in-app SOS function and delivery codes, and is designed for both individual journeys and recurring business logistics. The launch places passenger transport, courier services and commercial cargo movement in one operating product.
On August 31, NIGCOMSAT said its planned NigComSat-2A and 2B satellites would support criminal tracking, surveillance and secure communications for defence personnel in remote areas. The agency cited communication difficulties for troops operating in places such as Sambisa Forest, where existing channels can be unavailable or vulnerable to compromise.
West Africa’s political and security arrangements remain unsettled
On August 29, Niger’s military government requested assistance from Russia’s Africa Corps after mutineers attacked sensitive sites in Niamey and occupied Air Base 101 at the airport. France 24 reported on September 1 that the Russian force provided ground and air support to loyalist troops and helped retake the base. Analysts cited by the report linked the mutiny to the continuing jihadist insurgency and described the episode as evidence of the junta’s operational reliance on Moscow after its break with France.
On September 1, newly appointed ECOWAS Commission President General Birame Diop said the bloc would reopen meaningful engagement with Burkina Faso, Mali and Niger, which formally withdrew from ECOWAS after disputes over military rule, sanctions and constitutional order. He cited roughly 5,250 kilometres of shared borders and continued cross-border movement, trade and security challenges involving terrorism, organised crime, irregular migration and environmental pressures. Nigeria’s Minister of State for Foreign Affairs Sola Enikanolaiye supported renewed engagement and called for an “ECOWAS of citizens” with stronger accountability for the organisation’s resources.
On September 1, six Nigerian opposition parties—the ADC, APM, NDC, PDP, PRP and SDP—agreed to begin structured negotiations ahead of the 2027 general elections. Five working groups are to produce, within four weeks, documents covering a common presidential candidate, democratic renewal, a single-term transition charter, a national reform programme and opposition unity. The parties cited their combined 2023 vote total of about 13 million, compared with less than nine million votes for the eventual winner, as evidence of the electoral effect of divided opposition votes.
On September 1, Nigeria’s Defence Headquarters said the planned reduction of more than 200 US military personnel would not weaken bilateral security cooperation. The source page for this report was unavailable at publication, so no additional detail beyond the early-report description is included here.
On September 1, former Liberian President George Weah told the Nigerian Bar Association’s annual conference in Port Harcourt that an elected leader who weakens the Judiciary and Legislature remains a tyrant. He cited his acceptance of defeat in Liberia’s November 2023 presidential election and urged lawyers and judges to defend institutional independence and constitutional rights.
On September 1, Vice President Kashim Shettima said Nigeria opposed xenophobic and Afrophobic attacks against Nigerians and other African nationals in South Africa. Speaking in Luanda after representing President Bola Tinubu at an African Union extraordinary session, he called for dialogue with South Africa while asking its authorities to protect lives and human dignity during immigration enforcement.
Culture and digital platforms are widening external links
On August 31, Africanews reported on Zambia’s first Shaolin Temple, located on a 20,000-square-metre site 18 kilometres north of Lusaka. The cultural centre cost nearly $6 million to build and houses 37 students, most from underprivileged backgrounds, under Chinese, Zambian and Ivorian instructors. Training videos and dragon-dance performances have attracted millions of views on TikTok and Douyin. One student, Ronald Mwale, speaks Mandarin, has travelled to China four times and was preparing for a year-long stay there.
South Africa’s football association also reappointed Pitso Mosimane as men’s national-team coach on September 1, 14 years after his first spell in the role. The appointment appeared in the day’s sports coverage but provided no additional economic or regional-policy data for the main analysis.