Dangote Refinery has commenced production of Premium Motor Spirit (PMS), or petrol, from its 650,000 barrels per day facility in Lagos, marking a significant milestone in Nigeria’s energy sector.
At a press conference, billionaire businessman Aliko Dangote described the event as a “celebration day” for Nigerians, assuring that the petrol produced would be of top quality, matching global standards, including those of the US.
Dangote emphasized that the refinery’s petrol would ensure longer-lasting vehicle engines and eliminate engine issues previously caused by poor fuel quality.
The refinery, which began operations in December 2023, plans to reach full capacity by year-end. It has already started supplying diesel and aviation fuel to marketers and will soon make its products available in the market.
Dangote highlighted the refinery’s broader economic impact, citing import substitution, foreign exchange savings, and stabilization of the naira, which would help reduce inflation and the cost of living.
The development comes amidst Nigeria’s ongoing fuel supply challenges, exacerbated by the Nigerian National Petroleum Company Limited’s (NNPCL) significant debt to petrol suppliers and logistics issues.
Nigeria relies heavily on imported refined petroleum products due to non-operational government-owned refineries. Dangote Refinery’s production is expected to alleviate some challenges by reducing reliance on imported fuel, stabilizing the naira, and easing inflationary pressures.
