BREAKING: GOOD NEWS, President Buhari Finally Inaugurates Dangote Refinery

The 650,000 barrels per day (BPD) Dangote Oil Refinery, which President Muhammadu Buhari would inaugurate tomorrow, is expected to meet 100 per cent of Nigeria’s demand for all refined products.

Products expected to be produced in tonnes daily include premium motor spirit (PMS), diesel (AGO), aviation jet fuel and dual purpose kerosene (DPK), among others, thus raising the hope of Nigerians.

Although production of petroleum products is not expected from the plant until later in the year, the completion of Africa’s biggest oil refinery and the world’s biggest single-train facility is projected to create a market for $21billion per annum of Nigerian crude.

According to a report released by S&P Global Commodity Insights, the Dangote Refinery is anticipating the arrival of its first crude batch in June.

However, the inauguration is generating a lot of excitement from government officials, industry players and Nigerians as it has the potential to transform Nigeria from a petrol import-dependent country to an exporter of refined petroleum products

This is coming at a time the government is proposing subsidy removal from the second half of the year. Subsidy payments steadily rose from N351bn in 2005 to N4.39trn in 2022, while N3. 6trn was earmarked to fund fuel subsidy for the first six months in 2023...Continue Reading


Will it end subsidy?

While it is very unlikely that the start of operation at the refinery would lead to massive reduction in price of petrol, it will reduce freight cost and enhance supply security.

The chairman of Coronation Capital, Aigboje Aig-Imoukhuede, at a recent meeting in Abuja, while noting that the decision to have fuel subsidy in Nigeria is not grounded in any economic thinking but purely political decision, stressed that Dangote Refinery would not necessarily provide solution to the subsidy regime as the facility will operate as an international entity.

“From an economic standpoint you now have the ability to refine 650,000 barrels of crude per day in Nigeria once that refinery is commissioned. On whether or not it is going to mean that you can remove fuel subsidy, the first question should be: Will Nigeria give Dangote subsidised crude oil? At what price will Nigeria give Dangote crude oil?

“If you want to continue with fuel subsidy, the only way the Dangote Refinery is going to be able to generate fuel at sub-international market price is if you give the company subsidised crude oil. Now, Dangote is not asking for subsidised crude oil, nor are Nigerians asking for subsidised crude oil,” the former chief executive officer of Access Bank Plc said.

The president of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), Comrade Festus Osifo, at the 7th Triennial National Delegates’ Conference in Abuja, said that with the refinery, there would be an impact on the fuel supply dynamics.

“We welcome the bold move by operators of the Dangote Refinery coming on stream soon and hope that its addition would enhance local production, reduce products importation, as well as end the era of uncertainties in petroleum products pricing and evils of subsidy payment,” he said.

Local production, wealth creation

The International Monetary Fund (IMF) projected that the Dangote Refinery would help Nigeria’s economic recovery drive when it starts production.

The Bretton woods institution said the refinery would help the country improve its current account balance.

“With crude oil for local refining not subject to the Organisation of Petroleum Exporting Countries (OPEC) quota, the refinery also has the potential to catalyse more domestic crude oil production and boost gross domestic product (GDP),” it stated.

The African Petroleum Producers Organisation (APPO) underscored the importance of the establishment of the refinery to the continent.

The organisation said the refinery, which will supply over 12 per cent of Africa’s products demand when it becomes operational, would bring about a 36 per cent reduction in the importation of petroleum productions into the continent.

The organisation also expressed the belief that the success of Dangote Refinery could incentivise the rise of similar projects across Africa despite the current focus on energy transition.

The president of the African Development Bank (AfDB), Akinwumi Adesina, described the refinery as the best industrialised project to happen to Africa, noting that it would positively impact the economic growth and development of Africa as a continent.

“I see a company I will proudly call Africa’s growth accelerator company. With this project, we see an acceleration of how to reduce imports. We see acceleration on how to have an outbound on export, value chain development and how to compete regionally and globally

“This project will reverse the huge sum the country spends on foreign exchange. We import about $57 billion worth of different products and export only $50.4bn, so we have to balance that with about $7bn. And talking to them here, they showed us that they could have a domestic market of about $11bn; and that is an incredible market that will save Nigeria about $9bn a year from importing petroleum products. So this is huge for Nigeria and even Africa as a continent,” he had said during a tour of the facility in 2022.

The director-general of the Lagos Chamber of Commerce and Industry (LCCI), Dr Chinyere Almona, said the refinery would save and generate foreign exchange, create jobs, positively affect the value of the naira, broaden prosperity for the downstream sector and provide growth opportunities for businesses.

“The LCCI views the refinery’s impact on the Nigerian economy as significant. It will also stimulate economic growth by impacting the country’s balance of payments.

“In addition, the Chamber expects the refinery to fuel further growth and development across its value chain, including cosmetics, plastics, textiles etc,” she said.

The Abuja Chamber of Commerce and Industry (ACCI) also said the refinery would revolutionise the oil and gas industry in Nigeria.

The federal government, through the then Nigeria National Petroleum Corporation, in 2021 signed the term sheet with Dangote Group to buy a 20 per cent stake in the refinery for $2.76bn.

What Nigeria will benefit from refinery – Dangote, Kyari

The President of Dangote Group, Aliko Dangote, in an interview with a special edition of London-based The Economists Magazine, titled ‘The World Ahead 2023,’ said with the commencement of operation at the refinery, Nigeria could save up to $10 billion in foreign exchange and generate another $10 billion in exports

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The refinary is owned by Nigerian politicians,managed by Dangote

We just hope it meets our over all expectations, Nigerians are really really suffering

Freight costs, landing costs will be off, plus we will be buying in naira, it will really reduce our imports, increase value of naira, and reduce the costs, due to reasons highlighted above.

Why be say na only dagote built refinery in Nigeria?

You can't provide a well function refinery to us during your 8 years tenure as the minister for petroleum. You have failed the Nigeria masses and our trust.

Make same FG build same refinery.it will take them 20years to complete.

What is good news here, when nigeria as a country doesn't have its own functional refineries. Even one n ur saying good news,carry this stupid post common here

Make una forget talk, the refinery isn't ready for production, Apc and lies, they want to start importing refined product and sell for now, the Refinery isn't ready. Know this and know peace

Samfloxin:
The refinary is owners by Nigerian politicians,managed by Dangote

You are wise young man

JDistribute:
Freight costs, landing costs will be off, plus we will be buying in naira, it's meant to reduce our imports, increase value of naira, and reduce the costs, due to reasons highlighted above.

point of correction, from a Nigerian that have seen shege

Samfloxin:
The refinary is owners by Nigerian politicians,managed by Dangote

Cry us a river.

Alphafarms:
Make una forget talk, the refinery isn't ready for production, Apc and lies, they want to start importing refined product and sell for now, the Refinery isn't ready. Know this and know peace

Wailing wailer

donbachi:
Make same FG build same refinery.it will take them 20years to complete.

So you'd actually be happy if you hear FG was building a $20 billion refinery?

Perfectbeing:
So you'd actually be happy if you hear FG was building a $20 billion refinery?

nothing shocks me about Nigeria

Alphafarms:
Make una forget talk, the refinery isn't ready for production, Apc and lies, they want to start importing refined product and sell for now, the Refinery isn't ready. Know this and know peace

Very apt and true. If the refinery is ready, by now we should be seeing massive crude supply to the complex and refined products in the country from the company.
You don't hide a crude refinery operation.

What will likely play out is what Dangote did in rice. Import whole grain into the country and repackage and rebagged as a local product.

Time shall tell. Until NNPC is run like GAZPROM and ARAMCO, Nigeria just the play. Politicians, nepotism, favouritism, corruption are some key factors holding us down

Normal NIGERIA matter.

donbachi:
Make same FG build same refinery.it will take them 20years to complete.

It’s madness, we’re our own problem in this country.

Omo, if you see any legal and legitimate means to leave this country please do, these goons of brain dead leaders has finally privatized this country, imagine giving monopoly to one man to produce a primary goods without competition, what do u think will happen

So one single business man could build and effectively run a refinery but a country of a federal republic who used ten of trillions of naira to remodel refinery which never works because they divert this money on annual basics can't,

Omo this country is fvcked
😒

Foolish FG.

They should be ashamed of themselves, that what all the borrowed money and Abacha returned loot cannot do, One man did it. Nigeria is the problem of Nigerian, a blessed nation with Caused/Corrupt LEADERS.

Congratulations to Dangote and uncured sickness to all our corrupt politicians/Civil servants.

Hmm. Africa continent.

Refinery is not ready yet u want to commission it.

Sucre6:
Omo, if you see any legal and legitimate means to leave this country please do, these goons of brain dead leaders has finally privatized this country, imagine giving monopoly to one man to produce a primary goods without competition, what do u think will happen

So one single business man could build and effectively run a refinery but a country of a federal republic who used ten of trillions of naira to remodel refinery which never works because they divert this money on annual basics can't,

Omo this country is fvcked
😒

Please name an American state-owned refinery.

I'm waiting...

Bonus point if you can tell me that for Norway or Russia - all oil producing countries.

Flangelo12:


Please name an American state-owned refinery.

I'm waiting...

Bonus point if you can tell me that for Norway or Russia - all oil producing countries.

Since u decided to ignore the part I talked about monopoly
Name refineries in the US of A that is monopolized the way Nigeria is about to?

Bonus point name any country that monopolized their refinery to a sole producer.?
Am waiting.

Who do u mean by monopoly, did u ask for your own license to build a refinery and u are refused.U guys just hate hearing good news about Nigeria

Good let's start seeing it's economic effects ASAP

Sucre6:


Since u decided to ignore the part I talked about monopoly
Name refineries in the US of A that is monopolized the way Nigeria is about to?

Bonus point name any country that monopolized their refinery to a sole producer.?
Am waiting.

What monopoly?

Did you apply for a refinery licence and you were denied?

Losers complain about everything.

Flangelo12:


What monopoly?

Did you apply for a refinery licence and you were deprived?

Losers complain about everything.

Who told you the oil-producing state can't afford to run the refinery effectively and remite to the federal since Working refinaries are already situated there ? The federal Government can't run a refinary because they are all dull brain and lack technical know-how.

Whatever happened to true federalism..

I won't insult you just as u have done but since your knowledge about this is very limited, I won't respond to your myopic view no more, I like it when I engage smart minds in discussion

Flangelo12:


Please name an American state-owned refinery.

I'm waiting...

Bonus point if you can tell me that for Norway or Russia - all oil producing countries.

Stop compering Nigeria to America...

In developing countries government own refineries cos it's very difficult for private comps to build it..

Sudan government even has lots of refineries..

No our haste to be like Americans destroy this country.

Compare Nigeria with developing countries..

Sucre6:


Who told you the oil-producing state can't afford to run the refinery effectively and remite to the federal since Working refinaries are already situated there ? The federal Government can't run a refinary because they are all dull brain and lack technical know-how.

Whatever happened to true federalism..

I won't insult you just as u have done but since your knowledge about this is very limited, I won't respond to your myopic view no more, I like it when I engage smart minds in discussion

States have no business with business as witnessed over 50 years now.

NITEL failed - MTN succeeded.

Edo Line failed - Ohonba line succeeded.

NNPC has failed - Dangote would succeed.

Get this into your head that even the advanced world that you want to be like avoid state-owned enterprises because they have so many stumbling blocks inherent in them.

LikeAking:


Stop compering Nigeria to America...

In developing countries government own refineries cos it's very difficult for private comps to build it..

Sudan government even has lots of refineries..

No our haste to be like Americans destroy this country.

Compare Nigeria with developing countries..

Sudan that is at war is who you are using as an example?

Oh boy talk another thing.

If only you knew the high number of Sudanese emigrants in diaspora.