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Business News of Monday, 13 November 2023


'We want to start our journey' - Dangote speaks on availability of petrol from refinery

Aliko Dangote Aliko Dangote

Aliko Dangote, Chairman of the Dangote Group, said that petrol from his 650,000bpd-capacity refinery will be available to Nigerians soon.

Dangote disclosed this in an interview with Bloomberg in Riyadh during the Saudi-Nigeria business engagement.

Dangote reveals reason for refinery delay

The billionaire blamed the refinery's production delay on a plan to begin refining with crude sourced from Nigeria instead of importing.

He stated that the refinery had already secured a license to refine 300,000 barrels of crude oil daily. "We don't want to start our refinery with foreign goods. We want to start with the Nigerian crude. We're ready; you will see our gasoline products soon," Dangote said.

According to Dangote, The refinery will focus on the Nigerian market before exporting to other countries, especially in West Africa and the world.

Africa's richest man said the refinery's major priority is to supply petrol to Nigeria and Africa. Former President Muhammadu Buhari commissioned the refinery on May 22, 2023.

Dangote promised the refinery would commence production by late July or early August. The facility has missed two production deadlines.

FG mandates local refineries to supply stocks to local refineries

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) directed local oil companies to prioritize the supply of crude oil to local refineries in line with the Petroleum Industry Act (PIA)

The NUPRC vowed to sanction erring companies that fail to feed local refineries.

About five modular refineries have been completed and begun production in Nigeria but need feedstock, which analysts say is due to the desire of oil firms to export to obtain Forex.

"I think the reason the new refineries are complaining is the reluctance of local oil companies because of the desperate need to obtain scarce Forex,"

Adeola Yusuf, an energy policy analyst, said. Yusuf stated that the NUPRC's mandate is to tame the insatiable desire of IOCs and local oil firms for Forex. reported that local oil companies had demanded that Dangote and other refineries pay them in dollars for crude oil supply.

When fully operational, the Dangote refinery is expected to generate 27 million litres of diesel, 11 million litres of Kerosene, and nine million litres of aviation fuel.

Dangote told Bloomberg in Riyadh that his refinery is poised to source crude from local oil companies in Nigeria, including the Nigerian National Petroleum Company Limited (NNPC).