Petrol will roll out from Dangote Refinery next month, Dangote Group and Chief Executive Officer, Dangote Petroleum Refinery, Alhaji Aliko Dangote said yesterday. This significant development is a major milestone for the Dangote Group and the Nigerian oil industry.
According to Alhaji Dangote, the crisis over the supply of crude oil from the International Oil Cooperations (IOCs) has been resolved. This resolution came after the intervention of the Nigerian National Petroleum Company Limited (NNPCL) and the federal government. The supply issues had previously hindered the refinery’s ability to produce petrol, causing delays in its operations. However, with the crisis now addressed, the refinery is set to begin petrol production next month, marking a new era for Nigeria’s oil sector.
Addressing media executives during a tour of the Dangote Petroleum Refinery and Petrochemicals in Ibeju Lekki local government area of Lagos State, Alhaji Dangote elaborated on the crude supply challenge. He mentioned that this issue, which affected the refinery’s petrol supply, was resolved last week. The resolution has paved the way for the refinery to commence operations as scheduled, ensuring a steady supply of petrol in the coming months.
Alhaji Dangote expressed hope that the authorities and stakeholders will abide by the provisions of the Petroleum Industry Act (PIA). He emphasized the importance of regulatory compliance and collaboration among all stakeholders to ensure the success and sustainability of the refinery’s operations. The PIA provides a framework for the oil and gas industry in Nigeria, and adherence to its provisions is crucial for the smooth functioning of the sector.
Furthermore, Alhaji Dangote highlighted the resumption of the refinery’s fertiliser unit, which is set to export fertiliser in two weeks. This development is timely, as it aims to meet the local demand for fertiliser during this farming season. The increased availability of fertiliser will benefit farmers by enhancing their access to essential inputs for their agricultural activities. This move is expected to boost agricultural productivity and contribute to food security in Nigeria and beyond.
The Dangote Group has received substantial requests for fertiliser from Nigeria and other African countries. Recognizing the importance of supporting agricultural development, the group has responded positively to these demands. By supplying fertiliser to meet both local and regional needs, the Dangote Group is playing a vital role in promoting agricultural growth and sustainability across Africa.
Alhaji Dangote also addressed the financial setbacks faced by the group due to delays in securing a site for the Dangote Petrochemical Facility in Ogun State. He lamented that the delay in acquiring Olokola land for the petrochemical facility resulted in a $500 million loss for the conglomerate. The protracted process of acquiring the land significantly impacted the project timeline and overall costs, causing financial strain on the company.
“The three years and eight months delay by Ogun State Government over Olokola land for petrochemicals facility cost us $500 million,” Alhaji Dangote said. Despite this setback, the Dangote Group remains committed to its vision of expanding its petrochemical operations and contributing to Nigeria’s industrial growth.
Over the past decade, the Dangote Group has invested a total of $25 billion in the petrol refinery and fertiliser plant. This substantial investment underscores the group’s commitment to enhancing Nigeria’s industrial capabilities and reducing its dependence on imported petroleum products. The refinery, located in the Lekki Free Zone in Lagos, is expected to produce approximately 50 million liters of petrol and 15 million liters of diesel daily at full operation. This equates to 10.4 million tonnes of petroleum products annually, significantly boosting Nigeria’s refining capacity.
In conclusion, the imminent rollout of petrol from the Dangote Refinery marks a significant achievement for the Dangote Group and Nigeria’s oil industry. With the resolution of the crude supply crisis and the upcoming resumption of fertiliser exports, the refinery is poised to make a substantial impact on Nigeria’s economy and agricultural sector. The Dangote Group’s continued investments and commitment to regulatory compliance highlight its dedication to driving industrial growth and sustainability in Nigeria.
