Dangote Refinery Poised to Start Gasoline Production in September

The Dangote Refinery, Nigeria’s largest and one of the world’s biggest, is set to commence the delivery of refined Premium Motor Spirit (PMS) to the Nigerian market by September 2024, according to the Committee on Crude Oil Sales in Naira.
This significant milestone follows several reported challenges faced by Dangote Industries Limited, including alleged efforts by international oil companies to obstruct crude oil supplies to the refinery. Despite these hurdles, the refinery’s management is moving forward with its plans.
Zacch Adedeji, Executive Chairman of the Federal Inland Revenue Service, confirmed at the recent Implementation Committee meeting on transitioning to Crude Oil Sales in Naira that the first PMS delivery from Dangote is expected next month. This delivery is anticipated to mark a turning point in Nigeria’s fuel production landscape.
In parallel, the Nigerian government is set to begin naira-based transactions for crude oil sales to the Dangote Refinery starting October 1, 2024. This shift aims to enhance economic stability and streamline the local currency’s involvement in the oil sector.
The Finance Minister and Coordinating Minister of the Economy, Wale Edun, led a meeting to review progress on this transition, which included updates on the roles of key stakeholders. The Nigerian Midstream and Downstream Petroleum Regulatory Authority, the Central Bank of Nigeria, the Nigerian Upstream Petroleum Regulatory Commission, and the African Export-Import Bank are all involved in ensuring the smooth implementation of this new system.
The committee also provided updates on the Port Harcourt and Dangote Refineries, both of which are expected to see significant production increases starting in November 2024. These developments are anticipated to bolster fuel availability and stability in the Nigerian market.
Emphasizing the importance of transparency, the Finance Minister has directed the Technical Sub-Committee to finalize the details and prepare a comprehensive report for the president, ensuring that all directives are on track for implementation.
Stay tuned for further updates as Nigeria’s oil sector undergoes this transformative phase, promising a more self-reliant and economically stable future.