Dangote Refinery Begins Production, Eyes Local Market Sales This Week

The Dangote Refinery is set to commence the sale of petrol to local markets this week, following the successful completion of its test production phase. This milestone is expected to provide substantial relief to Nigerians facing petrol shortages, Warri Sentinel has learnt.

With a daily processing capacity of 650,000 barrels of oil, over half of which will be refined into petrol, the Dangote Refinery is projected to save Nigeria billions of dollars in foreign exchange. This is expected to greatly reduce the country’s reliance on imported fuel, which currently costs over $10 billion annually.

“It will show the full consumption of Nigeria; the capacity will not only meet Nigeria’s demand but also the demand of Sub-Saharan Africa, at least. It will help bring down inflation,” says Aliko Dangote, President/Chief Executive Officer of Dangote Group.

However, the journey has not been without challenges. In recent months, the Dangote Group has been at loggerheads with Nigerian petroleum regulators over control of the downstream market. The Group has also accused certain international oil companies of obstructing the refinery’s operations by withholding crude supplies or offering oil at inflated prices.

It has been gathered that the Nigerian National Petroleum Company Limited (NNPC Ltd) will exclusively purchase the refinery’s products. This development is set to enhance NNPCL’s ability to supply the local market and help resolve the ongoing fuel shortages that have been impacting major cities across Nigeria in recent months.