By Habeeb Ibrahim
Nigeria has resumed petrol production after a 28-year gap, marking a crucial development in the country’s energy sector. The Dangote Refinery in Lagos has successfully completed its test run of petroleum production, with sales set to begin immediately.
This achievement offers much-needed relief to Nigerians who have been facing severe fuel shortages, providing a significant boost to the nation’s energy independence and economic stability.
The refinery owned by Africa’s wealthiest individual, Aliko Dangote, has a capacity of 650,000 barrels per day (bpd) and has met all the necessary standards for refining operations, as per industry sources.
Despite investing heavily in the maintenance of its four state-owned refineries, Nigeria has been unable to bring them back to full operation, leading to a heavy dependence on imported fuel.
As Africa’s largest oil refining facility, the Dangote Refinery is expected to produce substantial quantities of petrol. The local distribution of this fuel is anticipated to ease the strain on Nigeria’s foreign exchange reserves and increase fuel availability.
Dangote, in a statement, expressed optimism about the refinery’s impact, saying, “This will bring stability to the naira, bring growth, development, and prosperity.” He also acknowledged President Bola Tinubu’s support in bringing the project to fruition.
In a discussion with reporters, Dangote underscored the refinery’s significance in providing accurate data on Nigeria’s petrol consumption. He mentioned that the facility allows for tracking all trucks and ships transporting fuel, which will reflect the actual consumption levels in the country. “As we have this refinery working, it will show the true consumption of Nigeria; we can track every loaded truck and ship,” he noted.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) also announced on its X handle that the refinery would initially release 25 million liters of petrol into the market this month, with an increase to 30 million liters planned for October.
The refinery’s output is expected to have a significant impact on the global fuel market, given Nigeria’s considerable demand for petrol. Randy Hurburun, a senior refinery analyst at Energy Aspects Ltd., predicted that the facility could eventually produce up to 330,000 barrels per day of petrol, which represents over 1% of global demand.
