The Dangote Refinery, commissioned in May 2023, is poised to commence petrol production in August 2024, following the resolution of its crude oil supply issues.
This announcement was made by Alhaji Aliko Dangote, President of Dangote Industries Limited, during a briefing with senior journalists in Lagos.
The supply challenges, which had hindered the refinery’s petrol output, were addressed last week with the intervention of the Nigerian National Petroleum Company Limited (NNPCL) and the federal government. “The crude supply challenge, which affected the supply of petrol from the refinery, was resolved last week after the federal government intervened,” Dangote revealed during the guided tour of the refinery located at the Lekki Free Trade Zone.
In June, the Vice President of Oil and Gas at Dangote Industries Limited, Devakumar Edwin, highlighted the difficulties faced due to the actions of international oil companies (IOCs). “While the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) are trying their best to allocate the crude for us, the IOCs are deliberately and willfully frustrating our efforts to buy the local crude,” Edwin stated. He added, “At some point, we paid $6 over and above the market price. This has forced us to reduce our output as well as import crude from countries as far as the US, increasing our cost of production.”
Beyond the resolution of crude supply issues, Dangote also announced that the refinery’s fertiliser unit would resume production in two weeks. This development is expected to enhance access to fertiliser for farmers in Nigeria and across Africa. “There is a massive request for fertiliser from Nigerians and the rest of Africa, so our group had no choice but to respond positively,” Dangote explained to over 70 journalists who attended the tour.
