NNPC Lifts Dangote Petrol, Sells At N897/litre (pic)
The Nigerian National Petroleum Company (NNPC) Limited tankers began lifting premium motor spirit (PMS) from Dangote’s giant refinery in Lekki, Lagos, on Tuesday, fueling feelings of Africa’s petrol renaissance.
The $20 billion refinery’s commencement offers a new and potentially more efficient supply route for Nigeria’s petrol needs.
According to Aliko Dangote, president of Dangote Group, the refinery has enough capacity to satisfy the petrol demand of not just Nigeria but the entire sub-Saharan region of Africa.
“The capacity that we have will not only meet up with the Nigerian demand, it will meet up with the demand of sub-Saharan Africa, at least,” he said while addressing the press on Tuesday at the inspection of the 650,000 barrels per day refinery.
He added, “As you know, there’s quite a lot of what you call round-tripping, where people now do documentation and the fuel does not come into Nigeria. So right now, as we have this refinery working, it will show the true consumption of Nigeria. We can track every single loaded truck and we will try as much as possible to track the loaded ships, trucks who can tell you where they are.”
Experts say the refinery will bring the much-needed relief to Nigerians currently experiencing excruciating petrol scarcity in towns and cities nationwide.
“Our PMS can be in filling stations within the next 48 hours, depending on NNPC,” Aliko Dangote said on Tuesday.
He assured Nigerians of high quality of petrol from his refinery, stating that the refinery will help to reduce problems associated with dirty fuel.
“We will offer good petrol while the engines of your vehicles will last longer. You will not be having an engine issue, which a lot of us were having. It won’t happen at all.”
He added, “The quality here will match that of anywhere in the world: US, America. We will make sure that nobody will beat us in terms of quality.”
Refinery to supply 25m litres
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) said Dangote oil refinery would supply a total of 25 million litres of petrol to the Nigerian market daily, starting from September.
NMDPRA disclosed on Tuesday that this would rise to 30 million litres from September.
In a short statement, the NMDPRA said it met with the NNPC Limited to agree on local crude supply to the refinery.
At the NMDPRA headquarters in Abuja, NNPCL reached an agreement to commence crude oil sale and supply to Dangote Refinery in local currency.
“The refinery is now poised to supply an initial 25 million litres of PMS into the domestic market this September. And will subsequently increase this amount to 30 million liters daily from October 2024,” NMDPRA said.
Femi Otedola, a billionaire businessman and chairman of Geregu Power, said the successful operation of the Dangote refinery could lead to a decline in the relevance of local depots, which have traditionally relied on fuel imports to meet domestic demand.
“The depot owners should take heed—it’s time to dismantle those depots and sell them as scraps while the market is still high. The world has changed, and those who do not adapt will be left behind,” Otedola said on his X handle on Tuesday.
Reflecting on their shared history, Otedola recounted the days when he and Dangote formed the Blue Star Consortium, aiming to acquire stakes in the Kaduna and Port Harcourt refineries.
“The days of bowing to foreign powers for our fuel needs are over. You have dealt a death blow to the so-called local cabals who have fattened themselves for years, feeding off our nation’s economic slavery,” Otedola said
He added, “These cabals, who have grown rich by keeping Nigeria in a perpetual state of dependence, must now face the reality that their era of easy gains is coming to an end. I am reminded of the time you revolutionized the cement industry in Nigeria”.
