The Dangote Group, led by Chief Executive Officer Alhaji Aliko Dangote, announced that petrol production will commence next month at the Dangote Petroleum Refinery. This follows the resolution of crude supply issues with the International Oil Corporations (IOCs) after intervention by the Nigerian National Petroleum Company Limited (NNPCL) and the federal government.
During a tour of the refinery and petrochemicals facility in Ibeju Lekki, Lagos, Dangote stated that the supply challenges, which had previously delayed petrol production, were resolved last week. He expressed optimism that authorities and stakeholders will adhere to the provisions of the Petroleum Industry Act (PIA).
Additionally, the refinery's fertiliser unit is set to resume exports in two weeks, aiming to meet local demand for the current farming season. Dangote highlighted the significant demand for fertiliser from both Nigerians and other African countries, emphasizing the group's commitment to responding positively.
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However, Dangote also lamented the financial setbacks due to delays in securing a site for the Dangote Petrochemical Facility in Ogun State, which resulted in a $500 million loss. He attributed this loss to the protracted process of acquiring Olokola land for the petrochemical facility, impacting the project timeline and costs.
“The three years and eight months delay by Ogun State Government over Olokola land for the petrochemicals facility costs us $500 million,” Dangote said.
Over the past decade, the Dangote Group has invested $25 billion in the petrol refinery and fertiliser plant. Located in the Lekki Free Zone, Lagos, the Dangote Refinery is expected to produce approximately 50 million litres of petrol and 15 million litres of diesel daily at full operation, equating to 10.4 million tonnes of petroleum products annually.
