THE Vice President of Oil and Gas at Dangote Industries Limited (DIL), Devakumar Edwin, has confirmed that the Dangote Oil Refinery and Petrochemicals company will commence the production of Premium Motor Spirit (PMS), commonly known as petrol, this July.
Edwin made this announcement during a visit to the Dangote Refinery in Ibeju-Lekki, Lagos, by S&P Global, headquartered in Manhattan, New York City, as part of Nigeria’s sovereign credit ratings assessment.
He reiterated the company’s commitment to starting petrol production in July as promised.
This initiative aims to leverage Africa’s abundant crude oil resources to locally produce refined products, fostering industrial development, creating employment opportunities, and boosting economic growth.
Edwin highlighted that the products from the $20 billion facility meet high-quality and international standards, with the capacity to meet 100% of Nigeria’s petrol, diesel, kerosene, and aviation Jet requirements, along with surplus for export.
S&P Global, an international financial analytics corporation, described the 650,000 barrels per day refinery as a solution to Nigeria’s foreign exchange challenges and pressure on the local currency, while also driving economic advancement.
The agency emphasized that the refinery, the largest single-train complex globally, would strengthen Nigeria’s oil sector and contribute positively to its economy.
S&P’s Director and Lead Analyst for Sovereign and International Public Finance Ratings, Ravi Bhatia, led the delegation and expressed confidence that the Dangote refinery would transform Nigeria into a net exporter of petroleum products, boosting revenue generation and easing pressure on foreign exchange reserves. Bhatia lauded the refinery’s capabilities and efficiency, noting its potential to save costs and foreign exchange for the country.
“It is a very impressive facility, able to process 650,000 barrels a day, when in full capacity. It is the largest single-train refinery complex in the world. It came out quite quickly. Nigeria is a big exporter of crude but has issues with importing refined fuels. So, there is a gap in the market where crude can be refined in Nigeria, save money that way, and potentially save some foreign exchange. This will be positive for the economy in the medium term. It looks positive from our assessment,” Bhatia said after an over four-hour tour of the facility.
The S&P team commended the President of Dangote Industries Limited, Aliko Dangote, for integrating advanced technologies and quality control measures, including a state-of-the-art Central Control Unit ensuring smooth automation of operations.
Other members of the team of the international rating agency include the Associate Director, Sovereign Ratings, Maxmillian McGraw; Director, Corporate Ratings, Omegu Collocott; Senior Analyst, Bank Ratings, Charlotte Masvongo, and Director, Financial Services, Samira Mensah.
Furthermore, Edwin mentioned that the refinery, currently operating at 350,000 barrels per day, is set to increase its capacity to at least 500,000 barrels per day by July/August, initiating the production of petrol and ultra-low sulphur diesel.
The facility is designed to process various crude types and meets stringent environmental and quality standards.
He also highlighted the significance of a Nigerian company designing and constructing the world’s largest single-train refinery complex, showcasing technological advancements and quality control measures.
The refinery’s self-sufficient marine facility can handle large vessels efficiently, emphasizing its energy efficiency, environmental friendliness, automation, and compliance with international norms.
Despite Nigeria being a major oil-producing country, it currently relies on imported refined products due to a lack of operational refineries.
The Dangote refinery’s operations are expected to significantly reduce the need for fuel imports, positively impacting Nigeria’s economy and energy sector.
According to data from the National Bureau of Statistics (NBS) in its Foreign Trade Statistics for the Fourth Quarter of 2023, Nigeria spent approximately ₦12tn on the importation of petroleum products in 2023, including petrol. This figure marks an 18.68 per cent increase compared to the ₦10tn spent on fuel imports in 2022.