The Vice President of Oil and Gas at Dangote Industries Limited (DIL), Devakumar Edwin, has assured that the Dangote Refinery will commence production of Premium Motor Spirit (PMS), also known as petrol, this month. Edwin made this announcement during a visit by officials from S&P Global, an international financial analytics corporation, to the Dangote Refinery in Ibeju-Lekki, Lagos, as part of its sovereign credit ratings assessment of Nigeria.
Edwin reiterated that the refinery, valued at $20 billion, will start producing petrol in July, leveraging Africa’s abundant crude oil resources to produce refined products locally. This initiative aims to spark industrial development, job creation, and economic prosperity in the region. He also mentioned that the refinery’s products meet international standards and are of high quality, capable of satisfying 100% of Nigeria’s demand for petrol, diesel, kerosene, and jet fuel, with excess production available for export.
S&P Global, represented by Director and Lead Analyst, Sovereign and International Public Finance Ratings, Ravi Bhatia, noted that the 650,000 barrels per day refinery could significantly alleviate Nigeria’s foreign exchange issues and reduce pressure on the naira.
The refinery’s operation is expected to accelerate Nigeria’s economic development and transform the country into a net exporter of petroleum products. The delegation from S&P Global was accompanied by officials from the Federal Ministry of Finance during the visit.
“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,” Bhatia said after touring the refinery for more than four hours.”
“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.”
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 for ensuring the smooth automation of operations.
Other members of the team of the international ratings 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.
Currently operating at 350,000 barrels per day capacity, Edwin said the refinery is slated to scale up to at least 500,000 barrels per day capacity by July/August, commencing the refining of petrol and ultra-low sulfur diesel.
He noted that the refinery, designed to process a wide range of crudes, conforms to Euro V specifications. In addition, it is designed to comply with the US EPA, European Union (EU) emission norms, the Department of Petroleum Resources (DPR) emission/effluent norms, and the African Refiners and Distribution Association (ARDA) standards.
While noting that most refineries were built by foreign companies, he said it is a thing of pride that a Nigerian company designed and built the world’s largest single-train refinery complex; handling its Engineering, procurement, and acting as the Construction (EPC) contractor.
Dangote refinery also incorporates a self-sufficient marine facility capable of handling the world’s largest vessels.
“The refinery can produce the best quality products in the world, Euro V grade. It is one of the energy-efficient refineries and it is highly environmentally friendly. It is sophisticated with a high level of automation. The largest single train refinery in the world is 100 per cent designed, engineered, and constructed by a Nigerian company as EPC contractor,” he said.
Nigeria, one of the world’s leading oil-producing countries, exports its crude oil for refining and subsequently imports refined products due to a lack of operational refineries. Nigeria imports an estimated 50 million litres of petrol daily to meet domestic demand.
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 importing 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.
