Nigeria’s Dangote Refinery, the largest in Africa, has officially started delivering petrol, marking a significant milestone for the oil-rich nation, which frequently faces fuel shortages.
The 650,000-barrel-per-day refinery, owned by billionaire Aliko Dangote, had previously begun producing diesel and aviation fuel in January. However, despite being a major oil producer, Nigeria had to rely on costly gasoline imports due to its lack of operational refineries.
On September 3, the refinery finally began producing petrol, with 500 trucks from the state-run Nigerian National Petroleum Corporation (NNPC) arriving to start deliveries.
This development aligns with the federal government’s statement that the refinery would begin distributing petrol to NNPC on September 15, 2024.
The update was shared on Sunday through a tweet posted on the official X (formerly Twitter) account of the Dangote Group.
The tweet, which declared, “NNPC begins PMS lifting at the Dangote Petroleum Refinery,” also featured images of multiple tankers being loaded with petrol at the refinery’s fuel loading gantry.
Prior to the commencement, Femi Soneye, Chief Corporate Communications Officer (CCCO) of NNPC Ltd, had disclosed on Saturday that by the end of the day, at least 300 trucks would be stationed at the refinery’s loading gantry in preparation for the scheduled petrol loading on Sunday, September 15.
Finance Minister Wale Edun hailed the event as a “historic breakthrough day” for Nigeria, emphasizing that it represents a critical step toward achieving energy self-sufficiency and security for the country.
For years, Nigeria has swapped billions of dollars’ worth of crude oil for petrol, which the government subsidized to keep domestic prices low. These fuel imports and subsidies have heavily drained the country’s foreign exchange reserves, especially amid declining oil revenues and a shortage of foreign currency.
Dangote Industries Vice President, Devakumar Edwin, stated that the refinery will meet Nigeria’s entire petrol demand with just 44% of its production capacity. The remaining 56% will be exported, providing much-needed export revenue and easing pressure on the country’s foreign exchange reserves.
Originally set to open in 2021, the refinery was officially inaugurated by former President Muhammadu Buhari last year.
Since taking office in May, President Bola Ahmed Tinubu has implemented significant economic reforms, including ending long-standing fuel subsidies and floating the naira currency, aimed at attracting foreign investment and promoting long-term growth.
However, these reforms have led to short-term economic pain, with fuel prices more than doubling, inflation reaching a 30-year high of 34% in June, and the naira significantly depreciating against the dollar.
This has contributed to rising costs for imported goods, exacerbating fuel shortages and leading to long queues at filling stations across Lagos.
The NNPC raised petrol prices from 568 naira ($0.36) per litre to at least 855 naira on Tuesday, citing financial challenges despite recording a profit of 3.3 trillion naira ($2 billion) last month.
Petrol from the Dangote refinery is expected to be available at gas stations starting October 1.
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