The state-of-the-art $20 billion refinery was launched in January 2024, but only began producing gasoline in September, expected to reach full operations in November. The giant refinery has a capacity to process 650,000 barrels of crude per day, more than enough for the country’s needs. To sweeten the deal further, the facility is buying crude and selling refined fuels in Nigeria in the local currency, saving the country’s much-needed foreign exchange, especially the US dollar.
The company made this known in reaction to a claim by the marketers that the refinery’s prices are higher than other suppliers, making it difficult for independent marketers to buy from it.
Dangote Refinery in the Federal Republic of Nigeria, has denied receiving any payments for the purchase of refined petroleum products from the Independent Petroleum Marketers Association of Nigeria (IPMAN)
Nigeria, often referred to as the “Giant of Africa,” is a country rich in natural resources, particularly in crude
oil. Yet, for decades, Nigerians, including this writer, have watched as their nation has struggled with refining
its crude, depending on costly imports to meet its domestic fuel needs. In a country with one of the largest oil
reserves in the world, it is ironic that fuel scarcity and high pump prices have become the norm. Enter the
Dangote Refinery, an ambitious mega-project that promises to change the game for Nigeria’s energy sector
and the economy at large.
Nigeria’s state-owned oil firm NNPC Ltd said on Saturday it will not be the sole buyer of gasoline from Dangote refinery but would step in if the facility sold above pump prices.
Despite promises that it would begin petrol production between August 10 and 12, 2024, the Dangote Petroleum Refinery may postpone the roll out of Premium Motor Spirit (PMS).
The Organisation of Petroleum Exporting Countries (OPEC), has said supplies from Nigeria-based world’s largest single-train Dangote Refinery and Petrochemicals will put pressure on the performance of Europe’s oil industry, especially the Northwest Europe (NWE) Gasoil.
As Dangote’s refinery struggles to secure domestic crude, allegations of price gouging and supply obstruction by international oil companies raise questions about Nigeria’s oil market.
Africa’s largest refinery, the Dangote facility in Nigeria, is actively seeking crude oil supplies from Libya and Angola. This move comes as the refinery faces difficulties obtaining adequate domestic crude due to theft, pipeline vandalism, and low investment in Nigeria’s oil sector.
Once seen as a potential solution to Nigeria’s reliance on fuel imports, the refinery’s development has been plagued by uncertainty, leading to questions about its ability to meet the country’s energy needs.