The Dangote Oil Refinery and Petrochemicals company is set to begin petrol production this month, according to the company’s Vice President of Oil and Gas, Devakumar Edwin. This announcement follows an onsite visit by the international financial analytics corporation, S&P Global, which described the 650,000 barrels per day (bpd) refinery as a potential game-changer for Nigeria’s economy.
S&P Global, headquartered in Manhattan, New York City, visited the Dangote Refinery in Ibeju-Lekki, Lagos, as part of its sovereign credit ratings assessment of Nigeria. Accompanied by officials from the Federal Ministry of Finance, the S&P team praised the refinery’s capacity to resolve Nigeria’s foreign exchange issues and ease the pressure on the Naira.
Ravi Bhatia, Director and Lead Analyst of Sovereign and International Public Finance Ratings at S&P Global Ratings, led the delegation and highlighted the refinery’s potential to transform Nigeria into a net exporter of petroleum products. “It is a very impressive facility, able to process 650,000 barrels a day when at full capacity. This will be positive for the economy in the medium term,” Bhatia stated.
During the tour, Edwin reiterated the company’s commitment to utilizing Africa’s crude oil resources to produce refined products locally. He assured that the $20 billion facility would meet 100% of Nigeria’s demand for petrol, diesel, kerosene, and aviation jet fuel, with surpluses available for export. Edwin noted that the refinery, currently operating at 350,000 barrels per day, will scale up to at least 500,000 barrels per day by July/August, beginning the refining of petrol and ultra-low sulfur diesel.
The S&P team commended Aliko Dangote, President of Dangote Industries Limited, for integrating advanced technologies and quality control measures, including a state-of-the-art Central Control Unit for smooth automation of operations.
The Dangote Refinery, designed to process a wide range of crudes including various African and Middle Eastern crudes as well as US Light Oil, conforms to Euro V specifications. It also meets US EPA, European Union (EU) emission norms, Department of Petroleum Resources (DPR) emission/effluent norms, and African Refiners and Distribution Association (ARDA) standards. Edwin highlighted that the refinery is 100% designed, engineered, and constructed by a Nigerian company as the Engineering, Procurement, and Construction (EPC) contractor.
Nigeria, one of the world’s leading oil-producing countries, exports all its crude oil for refining and subsequently imports refined products due to a lack of operational refineries. The National Bureau of Statistics (NBS) reported that Nigeria spent approximately N12 trillion on the importation of petroleum products in 2023, marking an 18.68% increase compared to the N10 trillion spent on fuel imports in 2022.
The commencement of petrol production at the Dangote Refinery is expected to significantly reduce Nigeria’s dependence on imported refined products, bolster the country’s foreign exchange reserves, and catalyze economic development.
