Dangote Refinery Plc has commenced petrol production, marking a crucial step for Africa’s largest refinery. Owned by Nigerian businessman Aliko Dangote, the $20 billion facility promises to ensure a consistent fuel supply in a country blighted by periodic petrol shortages and rising prices.
The refinery, which began operations in January 2024, initially produced naphtha and jet fuel but has now shifted to petrol, addressing the country’s urgent need for locally produced fuel. The Nigerian National Petroleum Corporation (NNPC), mired in a $6 billion debt and unable to meet domestic fuel demand, will be the sole purchaser of the gasoline processed by the Dangote Refinery.
Speaking at a conference, Aliko Dangote emphasised the refinery’s ability to produce Premium Motor Spirit (PMS) that will rival the quality found in the United States and other leading markets. “With this refinery in operation, we will have a clear picture of Nigeria’s true consumption. We will be able to track every truck and shipload,” Dangote remarked, highlighting the refinery’s role in stabilising Nigeria’s fuel supply.
The development is also seen as a strategic move to reduce Nigeria’s dependency on imported oil products. With a processing capacity of 650,000 barrels daily, the refinery is positioned to be a game-changer in the region, easing the burden on the NNPC and providing a buffer against fluctuations in global oil prices.
Securing a consistent supply of crude oil, however, poses a threat. The Dangote Group has voiced frustration over international oil companies prioritising foreign buyers and selling crude at higher prices, complicating the refinery’s operations. Nevertheless, the commencement of petrol production at the Dangote Refinery signals a new era of energy independence for Nigeria, with the potential to reshape the country’s economic outlook and provide relief to millions affected by the ongoing fuel crisis.
Clementine Wallop, the Director for Sub-Saharan Africa at Horizon Engage, noted, “The news that Dangote is processing gasoline couldn’t come at a more crucial time given NNPC’s statement about its difficulties securing imported supply due to financial strain.”
As the refinery ramps up production, anticipation remains high about how it will reduce fuel prices in Nigeria and live up to its promise of standard in petrol quality.
The Dangote Refinery Plc, spearheaded by Nigerian businessman Aliko Dangote, has begun petrol production, marking a pivotal development for Africa’s largest refinery. With a $20 billion investment, the refinery aims to address Nigeria’s persistent fuel shortages and soaring prices. Starting operations in January 2024, the facility initially produced naphtha and jet fuel but has now pivoted to producing petrol, a critical need for the nation.
The Nigerian National Petroleum Corporation (NNPC), struggling with a $6 billion debt, will be the sole purchaser of petrol from the refinery. Aliko Dangote highlighted the refinery’s capacity to produce high-quality Premium Motor Spirit (PMS), comparable to top international standards, and the potential for precise tracking of fuel distribution, thus stabilizing Nigeria's supply issues.
This move is anticipated to reduce Nigeria's dependency on imported oil products, with a notable processing capacity of 650,000 barrels per day. However, securing a steady crude oil supply remains a challenge due to international oil companies prioritizing foreign buyers.
As production escalates, there is high expectation that the refinery will help lower fuel prices and meet its promises of quality. Clementine Wallop from Horizon Engage emphasized the timely commencement of petrol production, given NNPC’s current struggles with financial constraints in securing imported supplies.
