In a significant development for Nigeria’s oil and gas sector, the Dangote Oil Refinery and Petrochemicals company has announced that it will commence production of Premium Motor Spirit (PMS), also known as petrol, this month.
This milestone was confirmed by the Vice President of Oil and Gas at Dangote Industries Limited (DIL), Devakumar Edwin, during a recent visit to the refinery site in Ibeju-Lekki, Lagos.
According to Edwin, the Dangote Refinery is designed to harness Africa’s abundant crude oil resources to produce refined products locally, thereby promoting industrial development, job creation, and economic prosperity.
He emphasized that the refinery’s products meet international standards and can meet 100% of Nigeria’s demand for petrol, diesel, kerosene, and aviation Jet, with surpluses available for export.
The refinery, which is currently operating at 350,000 barrels per day capacity, is expected to scale up to at least 500,000 barrels per day capacity by July/August. This increase in production capacity is expected to have a significant impact on Nigeria’s oil sector and the economy at large.
International financial analytics corporation, S&P Global, has also recognized the potential of the Dangote Refinery to transform Nigeria’s oil sector and boost economic development. According to S&P Global, the refinery has the capacity to resolve Nigeria’s foreign exchange issues and catalyse economic development.
The Dangote Refinery’s production is expected to transform Nigeria into a net exporter of petroleum products, boost revenue generation, and alleviate pressure on the country’s foreign exchange reserves. This development is expected to have a positive impact on the Nigerian economy and cement the country’s position as a major player in the global oil and gas industry.
The refinery’s production will also help to reduce Nigeria’s reliance on imported petroleum products, which has been a significant drain on the country’s foreign exchange reserves. According to data from the National Bureau of Statistics (NBS), Nigeria spent approximately ₦12tn on the importation of petroleum products in 2023, including petrol. This figure marks an 18.68% increase compared to the ₦10tn spent on fuel imports in 2022.
Overall, the commencement of petrol production at the Dangote Refinery is a significant milestone for Nigeria’s oil and gas sector and the economy at large. It is expected to have a positive impact on the country’s economic development and cement Nigeria’s position as a major player in the global oil and gas industry.
