The year 2024 has undoubtedly been eventful, marked by numerous defining moments. From politics to business, sports, and entertainment, it has been a year that will not be forgotten anytime soon.
In Nigeria, several key events shaped the year across various aspects of society. However, one industry that stood out was the petroleum sector. From having no functional refineries at the beginning of the year to having no fewer than three operational refineries by the year’s end, the petroleum industry has undoubtedly experienced transformative moments.
As the year draws to a close, Tribune Online recaps the pivotal events that shaped the petroleum industry in 2024.
The Dangote Refinery, the largest single-train refinery in the world, officially commenced operations and began rolling out Premium Motor Spirit (PMS), commonly known as petrol, on Tuesday, 3rd September 2024.
Aliko Dangote, while speaking about the refinery, which boasts a capacity of 650,000 barrels per day, described it as a turning point for Nigeria after years of relying on imported petroleum products. The refinery’s operations significantly reduced the country’s dependence on imports, bolstering local production.
In the lead-up to the 2023 general election, one of the campaign promises made by then-presidential candidate Bola Ahmed Tinubu of the All Progressives Congress was to ensure the functionality of state-owned refineries.
This promise was fulfilled on 26th November 2024, when the 60,000-barrel-per-day Port Harcourt Refinery resumed operations. The Group CEO of the Nigerian National Petroleum Company Limited (NNPCL), Mele Kyari, described the refinery’s resumption as a monumental achievement, marking the dawn of energy independence and economic growth for Nigeria.
Another major landmark moment in the petroleum industry in Nigeria was the crude-for-naira swap initiative.
Tribune Online reports that the Federal Executive Council (FEC), led by President Tinubu, approved the crude-for-naira swap in July. This initiative enables local refineries to purchase crude oil in naira and sell petroleum products locally in the same currency.
The initiative, which commenced on 1 October, has contributed to stabilising the naira and reducing pressure on the dollar.
In July 2024, Farouk Ahmed, the Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Agency (NMDPRA), alleged that Dangote Refinery and other major refineries, including Waltersmith, were producing diesel with sulphur content ranging from 650 to 1,200 parts per million (ppm).
In response, Aliko Dangote, President of Dangote Group, rejected the claims, asserting that the diesel from Dangote Refinery was significantly superior to the imported variety.
He pointed out that until late 2023, imported diesel into Nigeria contained up to 7,000 ppm of sulphur, emphasising that his refinery’s diesel meets much lower sulphur levels.
Read Also: Top 10 political events that shaped Nigeria in 2024
In a strategic effort to make petrol more affordable for consumers, Dangote Petroleum announced a partnership with MRS Oil on 21st December 2024. The initiative aimed to sell petrol at N935 per litre, a rate significantly lower than prevailing market prices.
According to Aliko Dangote, this collaboration has already led to reductions in the cost of petroleum products nationwide.
The entry of the Dangote Refinery sparked intense price competition among fuel retailers. The NNPCL and independent marketers were compelled to lower their prices in response to Dangote’s competitive pricing strategy.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) attributed the recent drop in pump prices to fierce competition between the refineries owned by Dangote and NNPCL.
Similar to the Port Harcourt Refinery, the Warri Refinery also resumed operations in 2024. On Monday, the NNPCL announced the resumption of operations at the Warri Refining and Petrochemicals Company (WRPC), a 125,000-barrel-per-day facility located in Ekpan, Uvwie, and Ubeji in Delta State.
The WRPC produces 13,000 metric tonnes per annum (MTA) of polypropylene and 18,000 MTA of carbon black. Commissioned in 1978 and managed by the NNPCL, the refinery serves markets in Nigeria’s southern and southwestern regions.
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