In a significant milestone for Nigeria’s energy sector, the Dangote Refinery has begun producing its first batch of Premium Motor Spirit (PMS), commonly known as petrol. This development comes over a year after the facility’s initial launch in May 2023.
At a press conference on Tuesday, Aliko Dangote, the billionaire businessman behind the Lagos-based refinery, expressed his enthusiasm. “It’s a celebration day for Nigerians,” he declared.
Dangote assured citizens of the product’s quality, stating, “You will now have good petrol, and the engines of your vehicles will last longer. You will not have engine issues, which many of us were experiencing. It won’t happen at all.”
The refinery owner emphasized the world-class standard of their product. “The quality here will match that of anywhere in the world; the US, America – we will ensure that nobody beats us in terms of quality,” Dangote affirmed.
Regarding the timeline for market availability, Dangote explained, “As soon as we finalize with the NNPCL, our product will start entering the market.”
He highlighted the broader economic implications of this development, noting, “We will help restore industry and manufacturing. We will begin real import substitution, saving foreign exchange, earning foreign exchange, which will stabilize the naira and help bring down inflation and the cost of living.”
The Dangote Refinery, a $20 billion facility, commenced operations last December with a capacity of 350,000 barrels per day. It aims to reach its full capacity of 650,000 barrels per day by year-end. The refinery has already begun supplying diesel and aviation fuel to marketers in the country.
This development comes at a crucial time for Nigeria’s energy sector. The Nigerian National Petroleum Company Limited (NNPCL) recently admitted to owing “significant debt to petrol suppliers,” contributing to ongoing fuel scarcity issues.
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The country has long faced energy challenges, with state-owned refineries non-operational and a heavy reliance on imported refined petroleum products.
The introduction of Dangote’s locally refined petrol could potentially alleviate some of these challenges.
However, it remains to be seen how this will impact the broader economic issues facing Nigerians, including the tripling of fuel prices since the removal of subsidies in May 2023 and the devaluation of the naira.
