The Vice President of Oil and Gas at Dangote Industries Limited (DIL), Devakumar Edwin, has affirmed that the Dangote Oil Refinery and Petrochemicals company will commence the production of Premium Motor Spirit (PMS), also known as petrol, this month.
During an onsite visit to the Dangote Refinery in Ibeju-Lekki, Lagos, by S&P Global, headquartered in Manhattan, New York City, as part of its sovereign credit ratings assessment of Nigeria, Edwin reiterated the company’s commitment to starting petrol production in July as promised.
He highlighted that this initiative will leverage Africa’s abundant crude oil resources to locally refine products, aiming to stimulate industrial development, create jobs, and foster economic prosperity.
Edwin emphasized that the products from the $20 billion facility meet international quality standards and can satisfy Nigeria’s entire demand for petrol, diesel, kerosene, and aviation jet fuel, with surplus capacity available for export.
Additionally, S&P Global, represented by its team accompanied by officials from the Federal Ministry of Finance, described the 650,000 barrels per day refinery as capable of addressing Nigeria’s foreign exchange challenges and reducing pressure on the local currency, while catalyzing broader economic development.
Ravi Bhatia, Director and Lead Analyst, Sovereign and International Public Finance Ratings at S&P Global Ratings, leading the delegation to Lagos, highlighted that the Dangote refinery will transform Nigeria into a net exporter of petroleum products, thereby enhancing revenue generation and alleviating pressure on the country’s foreign exchange reserves.
“It is a very impressive facility, able to process 650,000 barrels a day, when in full capacity. It is the largest single-train refinery complex in the world. It came out quite quickly. Nigeria is a big exporter of crude but has issues with importing refined fuels. So, there is a gap in the market where crude can be refined in Nigeria, save money that way, and potentially save some foreign exchange. This will be positive for the economy in the medium term. It looks positive from our assessment,” Bhatia said after an over four-hour tour of the facility.
The S&P team commended the President of Dangote Industries Limited, Aliko Dangote, for integrating advanced technologies and quality control measures, including a state-of-the-art Central Control Unit ensuring smooth automation of operations.
Other members of the team of the international rating agency include the Associate Director, Sovereign Ratings, Maxmillian McGraw; Director, Corporate Ratings, Omegu Collocott; Senior Analyst, Bank Ratings, Charlotte Masvongo, and Director, Financial Services, Samira Mensah.
Currently operating at 350,000 barrels per day capacity, Edwin said the refinery is slated to scale up to at least 500,000 barrels per day capacity by July/August, commencing the refining of petrol and ultra-low sulphur diesel.
He noted that the refinery, designed to process a wide range of crudes including various African and Middle Eastern crudes, as well as US Light Oil, conforms to Euro V specifications. In addition, it is designed to comply with US EPA, European Union (EU) emission norms, the Department of Petroleum Resources (DPR) emission/effluent norms, and the African Refiners and Distribution Association (ARDA) standards.
While noting that most refineries were built by foreign companies, he said it is a thing of pride that a Nigerian company designed and built the world’s largest single-train refinery complex, while acting directly as its own Engineering, Procurement, and Construction (EPC) contractor. The refinery also incorporates a self-sufficient marine facility capable of handling the world’s largest vessels.
“The refinery can produce the best quality products in the world, Euro V grade. It is one of the energy-efficient refineries and it is highly environmentally friendly. It is sophisticated with a high level of automation. The largest single train refinery in the world is 100 per cent designed, engineered, and constructed by a Nigerian company as EPC contractor,” he said.
Nigeria, one of the world’s leading oil-producing countries, exports all its crude oil for refining and subsequently imports refined products due to a lack of operational refineries. It is estimated that Nigeria imports at least 50 million litres of petrol per day to meet domestic demand.
According to data from the National Bureau of Statistics (NBS) in its Foreign Trade Statistics for the Fourth Quarter of 2023, Nigeria spent approximately ₦12tn on the importation of petroleum products in 2023, including petrol. This figure marks an 18.68 per cent increase compared to the ₦10tn spent on fuel imports in 2022.