Dangote Refinery to Begin Petrol Production
…Set to Boost Local Supply and Save Forex
By Patience Ikpeme
The Dangote Refinery is on the verge of commencing production of Premium Motor Spirit (PMS), commonly known as petrol, marking a significant milestone in Nigeria’s journey toward energy self-sufficiency.
This development was announced by Mr. Devakumar Edwin, Group Vice President, Oil and Gas, Dangote Industries Limited, during a tour of the Dangote Petroleum Refinery and Petrochemicals complex by the League of Engineering Bodies in Nigeria.
The 650,000 barrels per day (bpd) refinery, situated in Ibeju-Lekki, Lagos State, is expected to complement existing domestic refining capacities and substantially reduce Nigeria’s reliance on imported petroleum products.
Mr. Edwin emphasized that the refinery’s production would significantly boost the local supply of petrol, saving the nation substantial foreign exchange currently expended on fuel imports.
“This initiative is poised to transform Nigeria from one of the largest importers of refined petroleum products to a key player in the global energy market,” Mr. Edwin stated, addressing concerns about potential monopolistic dominance by the Dangote Group.
He countered the monopoly narrative, underscoring that the group’s foray into various industries, including cement, sugar, salt, and now fertiliser, has historically paved the way for other investors, thereby fostering healthy competition and benefiting the Nigerian economy.
“Alhaji Aliko Dangote’s business philosophy is rooted in his commitment to Nigeria’s economic development. While our operations are profit-driven, the returns are reinvested into the Nigerian economy, creating jobs and fostering industrial growth,” Edwin added. He further highlighted the refinery’s strategic advantages, including its state-of-the-art technology, environmentally friendly operations, and advanced marine infrastructure for efficient crude receipt and product evacuation. The facility is also designed to provide crude flexibility and create market of $21 billion per annum of Nigerian crude, produce Euro V-compliant products, with a focus on maximizing gasoline output, which constitutes 55% of its production capacity, a stark contrast to the 22% achieved by Nigeria’s existing refineries.
The visit by the League of Engineering Bodies in Nigeria provided a platform for these professionals to assess the refinery’s massive engineering feats. The League, comprising the National Society of Engineers (NSE), Nigerian Academy of Engineering (NAE), Association of Consulting Engineering in Nigeria (ACEN), and the Council for the Regulation of Engineering in Nigeria (COREN), expressed admiration for the scale and sophistication of the engineering works at the Dangote complex.
Margaret Oguntala, the 34th and first female President of the Nigerian Society of Engineers, described the facility as “mind-blowing,” noting that the state-of-the-art infrastructure is a testament to the capabilities of Nigerian engineers. “I was awed to see the state-of-the-art facility at the Dangote Refinery; what I see here today will blow the mind of any engineer. The young engineers who guided us around displayed remarkable expertise, which gives me hope that Nigeria’s future in engineering is bright,” she remarked.
Prof. Azikwe Peter Onwualu, representing the Nigerian Academy of Engineering, echoed similar sentiments, urging the Dangote Group to continue its transformative work despite criticism. “If we have this kind of development across Nigeria, people won’t be talking about protests. Keep doing what you are doing, and you will hear from us,” he said, acknowledging the positive impact such projects have on the national psyche.
COREN President, Prof. Sadiq Abubakar, also lauded the project, asserting that Nigerian engineers are on par with their global counterparts. “What we saw today is emotional, and it underscores the high standards of Nigerian engineering. The Dangote Refinery is proof that we are not inferior to any in the world,” he affirmed.
The sentiments of the engineering community were echoed by Engr. Babajide Soyode, Technical Consultant to Dangote Refinery, who expressed pride in the project’s execution. He commended Aliko Dangote’s unwavering commitment to Nigeria’s development, describing the opportunity to be part of the project as the “greatest honour” of his career.
As the refinery prepares for its first petrol rollout, its impact is expected to reverberate across the Nigerian economy, setting the stage for enhanced energy security and industrial growth in the coming years. The Dangote Refinery, once operational, will not only meet the domestic fuel demand but also position Nigeria as an exporter of refined petroleum products, further diversifying the country’s economic base.
