We’ve commenced fuel production — Dangote group

September 2, 2024

The Dangote Group has announced that its oil refinery has commenced petrol production, marking a significant step toward addressing Nigeria’s fuel scarcity issues.

Anthony Chiejina, Chief Branding and Communications Officer of Dangote Group, confirmed this to TheCable in a statement on Monday.

After several delays, the Dangote Petroleum Refinery had previously stated on August 22 that it was undergoing test runs for petrol production, with full operations expected to begin by mid-September.

The commencement of production had been postponed multiple times between May and August, causing widespread anticipation.

Aliko Dangote, Africa’s richest man, initially announced on May 18 that the refinery would start producing petrol in June, aiming to eliminate the need for Nigeria to import the product.

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However, production was delayed to July due to minor issues and was further postponed to August.

Chiejina’s statement came amid a prolonged shortage of Premium Motor Spirit (PMS), also known as petrol, in Nigeria. Since May, the country has faced significant fuel scarcity, which the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) attributed to contractual issues between mother and daughter vessels.

On September 1, it was reported that the petrol scarcity worsened due to a $6 billion debt that the Nigerian National Petroleum Corporation (NNPC) owed to suppliers. The NNPC acknowledged this debt on the same day, following two weeks of initial denial.

The commencement of petrol production at the Dangote Refinery is expected to provide much-needed relief to Nigeria’s fuel supply chain, potentially easing the ongoing scarcity and reducing the country’s dependence on fuel imports.

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