The Dangote Refinery has successfully rolled out its first batch of Premium Motor Spirit (PMS), also known as petrol, from its massive 650,000 barrels per day facility.
This comes over a year after the Lagos-based refinery was launched in May 2023.
Aliko Dangote, the billionaire industrialist behind the project, announced the rollout during a press conference on Tuesday.
He hailed it as a “celebration day” for Nigerians.
He stressed that the refinery would deliver top-quality petrol, addressing concerns about poor engine performance caused by substandard fuel.
“You’re now going to have good petrol,” Dangote assured Nigerians.
“Your vehicle engines will last longer, and you won’t experience the issues we’ve had in the past. The quality of our fuel will match that of anywhere in the world.”
Saving Forex and Boosting Local Industry
Dangote highlighted that his company is finalizing arrangements with the Nigerian National Petroleum Company Limited (NNPCL) to make the new product available in the market soon.
The refinery’s operations are expected to help reduce the country’s dependence on fuel imports.
This will save foreign exchange and boosting the local economy.
“We will restore industry and manufacturing through real import substitution,” he said. “This will stabilize the naira, help bring down inflation, and ultimately lower the cost of living.”
The refinery, which began operations in December 2023 with a capacity of 350,000 barrels per day, is working towards reaching its full capacity of 650,000 barrels per day by the end of the year.
It has already started supplying diesel and aviation fuel to marketers and has now expanded its offering to include petrol.
NNPCL Faces Debt Challenges
The rollout of petrol from Dangote Refinery comes amid ongoing challenges faced by NNPCL, which has admitted to owing a significant debt to petrol suppliers.
This debt, reportedly amounting to $6 billion, has worsen the country’s fuel scarcity issues.
Petrol prices have skyrocketed from ₦200 per litre to around ₦800 per litre since the removal of subsidies in May 2023.
The NNPCL, the primary importer of refined petroleum products in Nigeria, has cited logistics issues and other obstacles for the shortages.
In a recent statement, NNPCL spokesman Olufemi Soneye acknowledged the financial strain on the company and the risks it poses to maintaining a steady fuel supply.
Fuel Crisis and Economic Woes
Nigeria, despite being one of Africa’s largest oil producers, continues to face with energy shortages.
The country’s state-owned refineries remain non-operational, leaving it heavily reliant on imported fuel.
This reliance, combined with the unification of forex windows, has contributed to the sharp depreciation of the naira, with the exchange rate plummeting from ₦700 to over ₦1,600 per dollar in the parallel market.
Inflation has surged as a result, with prices of food and other basic commodities climbing steeply.
