Dangote Refinery Plc has commenced production of petrol for supply, News About Nigeria reports.
Anthony Chiejina, chief branding and communications officer of Dangote Group, confirmed the development on Monday.
The refinery, built by billionaire Aliko Dangote, began operations in January, initially producing naphtha and jet fuel.
The Nigerian National Petroleum Corporation (NNPC), which has been struggling to meet local fuel demand, will be the sole buyer of the gasoline processed by the Dangote Refinery.
On Sunday, the Nigerian National Petroleum Company (NNPC) Limited acknowledged that it is indebted to providers of premium motor spirit (PMS), also known as petrol.
The debt burden has impacted its ability to maintain a steady supply of fuel in the local market, resulting in persistent fuel queues since July and a sharp 45% increase in fuel prices from the official rate of N617 ($0.3942), following the removal of subsidy May 29, 2023, by President Bola Tinubu.
The $20 billion Dangote Refinery, located on the outskirts of Lagos, has a capacity of 650,000 barrels per day and is poised to significantly reduce Nigeria’s dependency on imported oil products.
Director for Sub-Saharan Africa at political risk consultancy Horizon Engage, Clementine Wallop, noted the refinery’s petrol production could not have come at a more critical time.
“The news that Dangote is processing gasoline couldn’t come at a more crucial time given NNPC’s statement about its difficulties securing imported supply due to financial strain,” she stated.
“This prompts the question of how NNPC will manage purchasing from Dangote, and impresses the need for greater transparency in its finances,” Wallop said.
The Dangote Refinery’s gasoline production is expected to alleviate some of the supply challenges faced by the NNPC.
