In a significant development for Nigeria's energy sector, Aliko Dangote, President of Dangote Industries Limited (DIL), has announced that the Dangote Petroleum Refinery now holds over 500 million litres of Premium Motor Spirit (PMS), commonly known as petrol, in its reserves.
This substantial stockpile, valued at more than ₦600 billion, is poised to meet the nation's fuel demands and reduce dependence on imports.
Speaking over the weekend, Dangote emphasized the refinery's capacity to produce sufficient refined products, including gasoline, diesel, and kerosene, to satisfy 100% of Nigeria's requirements.
He stated, “As we speak right now, we have more than half a billion litres. The refinery is producing enough refined products to meet 100% of Nigeria’s requirements.”
The Dangote Petroleum Refinery, located in the Lekki Free Trade Zone near Lagos, is Africa's largest oil refinery with a processing capacity of 650,000 barrels per day (bpd).
Since commencing operations in January 2024, the refinery has progressively increased its output, currently operating at 85% capacity, with plans to reach full capacity within the next 30 days.
This milestone coincides with a visit from a Zambian government delegation led by the country's Minister of Energy, Mr Makozo Chikote.
The delegation toured the refinery complex to explore potential energy partnerships.
Dangote highlighted the broader vision of the refinery, stating, “This refinery is not only for Nigeria; it is for Africa.
“We must sustain the African Continental Free Trade Area (AfCFTA) deal. We are trying to see how we trade with other African countries.”
Chikote expressed admiration for the refinery's scale and its potential impact on Africa's energy landscape.
He noted, “In Zambia, we created an environment for the private sector to participate in the growth and development of our country.
“Currently, 100% of our petroleum is done by the private sector.”
Chikote emphasized Zambia's interest in collaborating with Dangote to enhance competition and efficiency in their energy sector, stating, “We are looking at Dangote coming on board, which would lead to efficient, reliable, quality, and competitive products.”
The refinery's Vice President of Oil and Gas, Mr Edwin Devakumar, provided insights into the facility's production capabilities.
He detailed that the refinery produces 57 million litres of petrol daily, meeting Nigeria's local consumption needs, which stand at approximately 46 million litres per day.
The surplus production is earmarked for export, contributing to regional energy security and economic growth.
Devakumar also highlighted the refinery's strategic design, allowing it to process various crude oil grades from Africa and the Middle East.
This flexibility ensures maximum value extraction from each barrel of crude processed.
He stated, “The project concept was to process the crude from Nigeria and add value.
“But we also wanted to provide some flexibility to process most of the African crudes and some of the Middle Eastern crudes.”
The Dangote Petroleum Refinery's operational advancements have prompted calls from industry stakeholders for the Nigerian government to halt petrol imports.
With the refinery's substantial reserves and production capacity, local refinery owners advocate for leveraging domestic resources to achieve energy self-sufficiency.
This move is expected to conserve foreign exchange and stimulate local economic development.
As the refinery approaches full operational capacity, its impact extends beyond Nigeria's borders.
The facility is poised to play a pivotal role in regional energy supply, fostering economic integration and cooperation among African nations.
The collaboration with Zambia exemplifies the potential for intra-African partnerships to address energy challenges and drive sustainable development across the continent.
In summary, the Dangote Petroleum Refinery's significant petrol reserves and production capabilities mark a transformative period for Nigeria's energy sector.
Coupled with regional collaborations, the refinery is set to enhance energy security, promote economic growth, and strengthen ties among African nations.
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