In a significant milestone for Nigeria’s energy sector, Aliko Dangote, President of the Dangote Group, Tuesday presented the first sample of Premium Motor Spirit, PMS, commonly known as petrol, from his 650,000-barrel-per-day refinery in Ibeju-Lekki, Lagos.
The refinery, currently in its test run phase, is poised to revolutionize the country’s fuel supply and stabilize the Naira through a groundbreaking “Naira for Crude” initiative.
Dangote expressed his gratitude to President Bola Tinubu and the Nigerian government for fostering an environment conducive to growth and development. He emphasized that the refinery’s output would not only satisfy Nigeria’s fuel demands but also cater to the broader sub-Saharan African market.
“This refinery will reveal Nigeria’s true consumption, enabling us to track every truck and ship loaded with petrol,” Dangote stated, highlighting the refinery’s potential to reshape the nation’s energy infrastructure and drive economic stability.
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He displayed a sample of the PMS, saying despite its different colour, it is the best and most suitable for car engines and can match the quality of PMS anywhere in the world.The PMS will be made available to the public when business has been finalized with the NNPC, he explained.
Dangote promised that the refinery will satisfy the market 100 percent by ensuring constant supply, eliminate fuel queues, bring stability to the Naira and ensure growth in our economy.
He also showcased a sample of diesel which is called Euro 5 diesel (less than 10 ppm), the first in the history of Nigeria which is the most suitable for cars, generators and the public health as it has a lower sulphur content which means lesser toxic emissions is released into the air.
On Monday, Vice President of Dangote Petroleum Refinery, Devakumar Edwin said the company may export its petrol if the Nigerian National Petroleum Company Limited and other petroleum dealers in the country refuse to patronise it.
Edwin, while featuring on Brekete Family live show, confirmed that while the company had started production local oil traders have resorted to importing diesel and aviation fuel, blocking local sales of Dangote fuel.
“We have been exporting aviation fuel, we have been producing kerosene, we have been producing diesel, but yesterday, we started the production of PMS. So, that was the last stage. The only thing now left out is petrochemicals.
“So, the good news for the country is we have started producing PMS from our refinery since yesterday (Sunday),” he confirmed.
Asked if the petrol would be sold locally, Edwin replied, “Well, I explained how there has been a kind of a blockade from lifting our products within the country. The traders have been trying to block (it), and so now we have been exporting our petroleum products. PMS, we are ready to pump in as much as possible to the country.
“But if the traders or NNPC are not buying the product, obviously, we will end up exporting the PMS as we are doing with the aviation jet and diesel,” he declared.
Edwin expressed surprise that the company started facing different challenges it never expected when the refinery was set to commence operations.
He recalled that the philosophy initially was to add value to the raw materials available in the country, regretting that Nigeria is still exporting crude and importing refined petroleum products after over three decades.
“The philosophy is to take the crude, and instead of exporting the crude, refine it, add value; export the finished products, and supply the finished products locally. But unfortunately for us, we started facing challenges with the crude supply.
“What is happening today? We are struggling to get the crude. We are now importing the crude from the US, we are importing from Brazil, and from other parts of the world. So, the whole philosophy has gone upside down. After all these decades, we are exporting crude, importing products,” he added.
He stated further, “The same thing is continuing. We are not getting enough crude allocation, and the crude is still being exported. We are forced to import crude from outside. Yes, we are getting some crude locally, but it’s not adequate.”
Commenting on the laws governing domestic crude supply obligations, he said, “As per the laws, no crude can be exported, unless all the local refineries requirements are met. That is specified in the Petroleum Industry Act. But we are struggling to get the crude.”
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