The Nigerian Bar Association (NBA) has strongly advocated for the full implementation of President Bola Ahmed Tinubu’s directive to guarantee a continuous supply of crude oil to the Dangote Refinery and other modular refineries located across the country. In order to alleviate the nation’s ongoing fuel shortages and long lines at gas stations, the NBA sees the establishment of the Dangote Refinery as an essential and patriotic endeavor. The group believes the refinery has the potential to wean Nigeria’s dependency on imported refined Petroleum products, and urged for support from the Federal Government and the Nigerian people.
President of NBA, Yakubu Maikyau, along with other association executives and members, showed his appreciation for the project during a tour of the facility. He praised the resolve of Aliko Dangote, the president and chief executive officer of the Dangote Group, in the face of resistance from powerful groups who stand to gain financially from Nigeria’s reliance on foreign petroleum products. Dangote, according to Maikyau, is a “economic warrior” and a “freedom fighter,” and his ongoing support for the refinery project shows an undying sense of Patriotism and commitment to Nigeria’s economic sovereignty.
Nigeria may move to being a net exporter of fuel.
Maikyau voiced dissatisfaction that the nation still depends mostly on imported refined petroleum products despite being a major producer of crude oil. He contended that because crude importers continue to retain a Monopoly on the market, this dependence has stunted the economy. These importers are perceived as opposing the full operation of the Dangote Refinery because it would undermine their influence over Nigeria’s fuel supply. They profit from the current system. The president of the NBA pleaded with the federal government to improve the Dangote Refinery’s operating environment.
He emphasized that Nigeria may move from being a net importer of refined petroleum products to a net exporter by guaranteeing the refinery’s operation. This change will greatly strengthen the country’s Economy in addition to easing the extreme hardships brought on by the fuel shortage. Maikyau bemoaned the absurdity of Nigeria’s predicament, noting that despite having such a sizable refinery, the nation still has a petroleum crisis. He deemed it an aberration that the refinery, which can process massive amounts of petroleum, is currently importing crude oil to the facility since the local supply is limited.
Dangote refinery to start producing petrol by September.
Devakumar Edwin, Vice President of Oil & Gas at Dangote Industries Limited highlighted the overview of the refinery’s main objective, which is to refine local crude oil for Nigeria’s benefit. However, the refinery has had to purchase crude from foreign nations while exporting processed products because there isn’t enough Nigerian oil available. Prior to Tinubu’s directive, Aliko Dangote had voiced worries about the refinery’s operational difficulties stemming from a paucity of crude oil supplies. Due to problems with international oil corporations (IOCs), the refinery, which can process 650,000 barrels per day (bpd), initially had trouble obtaining enough crude.
These companies reportedly either demanded exorbitant charges or claimed to be unavailable, which prompted Dangote to acquire crude from outside, raising operating expenses. The refinery encountered difficulties that caused the original May commencement date to be postponed to July and then August. Before the Nigerian government intervened, the situation appeared hopeless. By stepping in, the Nigerian government was able to address the supply problems and guarantee that the refinery could start producing petrol by September 2024.
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Additionally, starting on October 1, 2024, the government decided to begin selling crude oil to local refineries, including Dangote’s, in naira. By stabilizing the crude supply and bolstering refinery operations, this policy change is anticipated to lessen Nigeria’s need on gasoline imports and position the nation as a possible net exporter of refined petroleum products in the near future. Though these are encouraging trends, analysts warn that as a for-profit business, the refinery might put profits ahead of sharply lowering fuel prices. Nevertheless, the predicted rise in domestic production is anticipated to spur competition and level the playing field for gasoline availability nationwide.