Toba Owojaiye reporting
Lekki, Lagos State
Dangote Refinery, the world’s largest single-train refinery, commenced production in Nigeria’s commercial hub on Friday. Despite the initial target of starting operations in June 2023, the refinery, spearheaded by Aliko Dangote, received six million barrels of crude supply last year, marking progress in the delayed megaproject.
Truth Live News confirmed that though touted as Africa’s largest of its kind, the 650,000 barrel-per-day Dangote refinery holds the potential to transform Nigeria’s economy by curbing its reliance on fuel imports. This initial phase focuses on diesel and aviation fuel production before expanding to petrol output. Nigeria, a major oil producer, has grappled with fuel import dependence due to insufficient refining capacity.
Fuel imports and subsidies, draining foreign exchange during times of dwindling oil revenues, have posed economic challenges for Nigeria. Dangote Petroleum Refinery aims to address this by being capable of meeting 100% of the country’s refined product needs and generating surpluses for export, as stated by the company.
Situated on 2,635 hectares at the Lekki Free Zone near Lagos, the refinery represents a significant investment of approximately $19 billion. Originally scheduled to open in 2021, it was inaugurated by former President Muhammadu Buhari in 2023. President Bola Tinubu, who assumed office in May, has implemented economic reforms, ending the fuel subsidy and floating the naira currency to attract foreign investment and foster long-term growth.
Acknowledging the challenges, President Tinubu urges patience with his reform program, as it initially led to soaring fuel prices, a sharp depreciation of the naira, and an increased cost of living. The Dangote refinery’s production launch aligns with expectations for the Port Harcourt refinery to commence operations, signaling a potential shift in Nigeria’s energy landscape.