Dangote Oil Refinery, wey be Africa’s largest refinery, dey set to take in up to 400,000 barrels of Nigerian crude oil every day for the next two months. Dis move go transform the region’s import and export markets, according to reports from Bloomberg News.
The refinery, located outside Lagos, go receive about 24 million barrels of Nigerian crude in October and November as it increases its use of local feedstock. This development go shake up the Atlantic oil markets and reduce Nigeria‘s reliance on imported petroleum products.
A new report from Data Services & Resources Ltd indicate say Dangote Oil Refinery go raise Nigeria’s Gross Domestic Product (GDP) to $322 billion by 2025. Without the refinery, Nigeria’s GDP growth was expected to be 3.34% in 2024, but with the refinery, it is projected to rise to 4.15% in 2024 and reach 6.21% by 2030.
The refinery, which started initial production in January 2024, is expected to process 650,000 barrels per day by the first quarter of 2025. It will produce 10.4 million tonnes of gasoline, 4.6 million tonnes of diesel, and 4 million tonnes of aviation fuel annually. This will create thousands of direct and indirect jobs and improve the country’s trade balance by increasing exports of refined products.
The Federal Government has commenced the sale of crude oil to Dangote Refinery and other local refineries in naira, starting from October 1. This initiative aims to reduce pressure on the naira, eliminate unnecessary transaction costs, and improve the availability of petroleum products across the country. Dangote Refinery will supply gasoline and diesel of equivalent value to the domestic market, paid for in naira.
NNPC has already begun lifting petrol from the Dangote refinery since September 15, with plans to supply 25 million litres of petrol to the Nigerian market daily. This effort is part of the government’s strategy to alleviate fuel shortages and enhance economic activities.
