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Dangote Group Announces Commencement of Petrol Production at its Refinery

The Dangote Group has confirmed that its oil refinery has officially begun producing petrol for supply. Anthony Chiejina, the chief branding and communications officer of the conglomerate, made the announcement on Monday, speaking with TheCable.

This milestone comes after a series of delays, with the refinery initially expected to start operations between May and August of this year. On August 22, Dangote Petroleum Refinery announced that it was conducting test runs for petrol production, with full-scale operations slated to begin by mid-September.

Aliko Dangote, Africa’s wealthiest individual and the driving force behind the refinery, had earlier stated on May 18 that the facility would commence petrol production in June. He assured that once the refinery became operational, Nigeria would no longer need to import petrol. However, subsequent delays pushed the commencement date first to July and later to August, with the refinery facing minor setbacks.

The announcement of the refinery’s operational status comes at a critical time for Nigeria, which has been grappling with a severe petrol shortage since May. The scarcity of premium motor spirit (PMS), commonly known as petrol, has been attributed to contractual issues between mother and daughter vessels, according to the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN).

The situation further deteriorated on September 1, when reports surfaced that the ongoing shortage was exacerbated by a $6 billion debt owed by the Nigerian National Petroleum Corporation (NNPC) to suppliers. On the same day, the NNPC acknowledged its debt, a reversal from its previous denial two weeks earlier.

The commencement of petrol production at the Dangote Refinery is expected to provide significant relief to the nation’s fuel supply chain, potentially easing the shortages that have plagued the country in recent months.

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