The Dangote Refinery, led by Alhaji Aliko Dangote, is poised to commence petrol production in August 2024, having successfully navigated significant hurdles in securing crude oil supplies.
This development follows crucial interventions by the Nigeria National Petroleum Company Limited (NNPCL) and the federal government.
During a press briefing with senior journalists in Lagos on Sunday, Dangote disclosed that the refinery’s crude supply issues were resolved last week.
The refinery, situated in the Lekki Free Trade Zone, had been struggling to source crude locally due to actions from international oil companies (IOCs).
In June, Devakumar Edwin, Vice President of Oil and Gas at Dangote Industries Limited (DIL), revealed that the IOCs were creating obstacles to purchasing local crude.
“While the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is trying their best to allocate crude for us, the IOCs are deliberately and willfully frustrating our efforts to buy local crude,” Edwin stated.
He highlighted that the IOCs were either demanding exorbitant premiums or claiming crude was unavailable, forcing the refinery to reduce output and import crude from distant countries like the United States, significantly raising production costs.
Despite these challenges, the federal government’s recent intervention has been pivotal in overcoming the crude supply bottleneck.
Dangote’s announcement signals a major step forward for the refinery, which is expected to boost Nigeria’s domestic petrol supply and reduce dependence on imported fuel.
In addition to addressing the crude supply crisis, Dangote announced that the refinery’s fertiliser unit is set to resume production in two weeks.
This move aims to meet the rising demand for fertiliser among Nigerian farmers and across Africa, enhancing agricultural productivity in the region.
The guided tour of the refinery included over 70 journalists, providing an in-depth look at the facility’s capabilities and the scale of the project.
The Dangote Refinery’s readiness to roll out petrol and its plans to ramp up fertiliser production underscore its critical role in supporting Nigeria’s economic development and self-sufficiency in key sectors.
As August approaches, the successful launch of petrol production at the Dangote Refinery will mark a significant milestone in Nigeria’s energy sector, potentially transforming the landscape of local fuel supply and fertiliser availability.