Dangote refinery powers Nigeria to first credit upgrade in 14 years
A Dangote crude oil tank is seen inside the Dangote Industries oil refinery and fertilizer plant site in the Ibeju Lekki district of Lagos, Nigeria March 2, 2026. PHOTO | REUTERS
Nigeria has received its first sovereign credit rating upgrade in 14 years, with global ratings agency S&P Global Ratings citing the growing impact of billionaire Aliko Dangote’s $20 billion refinery as a major factor behind the improvement.
S&P upgraded Nigeria’s long-term sovereign rating from B- to B on May 15, saying the refinery has helped reduce the country’s dependence on imported fuel, strengthen foreign exchange reserves and improve its external financial position.
Located near Lagos, the refinery is operating close to its 650,000 barrels-per-day capacity and is increasingly supplying fuel, gas and fertiliser to the domestic market.
According to S&P, this has helped cushion Nigeria from global supply disruptions linked to the Middle East conflict.
Nigeria’s foreign exchange reserves rose to $50 billion by March 2026 from $33 billion in 2023, while the current account surplus is projected to reach 5.8 percent of GDP this year.
S&P also noted plans by Dangote Industries to expand the refinery’s capacity to 1.4 million barrels per day, strengthening Nigeria’s energy security and broader economic stability.
