… announces petrol could reach filling stations in 48hrs, price to be set based on FG agreement
Femi Otedola hails Dangote, urges MEMAN, DAPPMAN, others to prepare for depot dismantling amid market shifts
NMDPRA says Dangote refinery to supply 25m litres of petrol in September, to boost to 30 m litres daily from October
Thelma Tokunbo
Alh. Aliko Dangote, President of Dangote Group, has officially announced the commencement of Premium Motor Spirit (petrol) production at the Dangote Refinery, unveiling the first sample of the product during a press conference on Tuesday at the refinery.
During the event, Dangote expressed his appreciation to President Bola Tinubu for facilitating the sale of crude oil in Naira, presenting the first sample of petrol to the media.
He remarked, “I would like to commend the people of Nigeria and the administration of President Bola Tinubu for creating an environment conducive to growth, development, and prosperity.
“I also want to personally thank him (Tinubu) for the innovative approach of exchanging crude for Naira. This initiative will help stabilize the Naira,” he said.
Dangote further highlighted that the refinery’s operation would provide accurate insights into Nigeria’s actual consumption patterns, enabling effective tracking of every truck and shipload of petrol.
He also emphasized that the refinery is poised to meet the energy demands not only of Nigeria but also of sub-Saharan Africa.
He further said, “Our petrol can be in filling stations within the next 48 hours depending on NNPCL and that the pricing of the petrol would be based on an agreement with the Federal Government.
He said, “It is an arrangement which is designed and approved by the Federal Executive Council led by His Excellency, President Bola Ahmed Tinubu.
“As soon as it is finalised, which he (Tinubu) is pushing, once we finish with NNPC, it can be today, it can be tomorrow, we are ready to roll into the market,” he said.
” Nigerians would have “good petrol while the engines of your vehicles will last longer. You will not be having an engine issue, which a lot of us were having. It won’t happen at all,” Dangote said.
He further emphasised that the quality petroleum product from his refinery will match that of anywhere in the world, and the United States America (USA).
“Our diesel, called Euro 5 diesel, has less than 10 ppm, which will help engines, vehicles, and generators last much longer and will not pollute the health of people or the environment. Our lab is not number two; it is the number one lab in the world”.
According to Dangote, “We will make sure that nobody will beat us in terms of quality.”
Femi Otedola, billionaire businessman and Chairman of Geregu Power, praised Aliko Dangote (his friend) for the official commencement of petrol production at the Dangote Refinery.
He urged depot owners in Nigeria, including members of the Major Energy Marketers Association of Nigeria (MEMAN), the Depot and Petroleum Products Marketers Association of Nigeria, and other independent petroleum marketers, to prepare for a significant shift in the industry.
Otedola advised them to consider dismantling their petroleum product depots and selling them as scrap while market conditions are still favourable.
He cautioned depot owners, stating, “It’s time to dismantle those depots and sell them as scrap while the market is still high.”
Otedola emphasized that the world is evolving, and those who fail to adapt will inevitably be left behind.
Reflecting on his own experience, Otedola recalled, “When I entered the depot business with Zenon, it was in response to the inefficiencies of the NNPC.
Zenon pioneered the diesel business in Nigeria, quickly becoming the largest in the country, filling the gaps left by our inefficient system.”
He highlighted that while Zenon once thrived on the inefficiencies of the past, today, Dangote’s refinery symbolizes what can be achieved through bold vision and relentless determination.
Otedola further lauded Dangote for liberating Nigeria from the economic dependence that has long hindered the nation’s progress.
He remarked, “The days of relying on foreign powers for our fuel needs are over, thanks to your vision and determination. You have delivered a decisive blow to the so-called local cabals who have grown wealthy by perpetuating Nigeria’s economic slavery.
“These cabals, who have thrived by keeping Nigeria dependent, must now face the reality that their era of easy gains is drawing to a close,” he said.
Otedola predicted that with the Dangote refinery now fully operational, the impact on the fuel import sector will be as transformative as Dangote’s earlier revolution in Nigeria’s cement industry.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has finalized an agreement with the Nigerian National Petroleum Corporation (NNPC) Limited to sell crude oil to Dangote refinery in local currency, the naira.
NMDPRA further confirmed that the refinery is now poised to supply an initial 25 million litres of PMS into the domestic market this September.
The regulator added that the refinery will subsequently increase that amount to 30 million liters daily from October 2024.
“At the NMDPRA headquarters in Abuja, NNPCL reached an agreement to commence crude oil sale and supply to Dangote Refinery in local currency.
“The refinery is now poised to supply an initial 25 million litres of PMS into the domestic market this September. And will subsequently increase this amount to 30 million liters daily from October 2024,” NMDPRA said.
This latest development is coming as Nigerians continue to grapple with a severe nationwide petrol scarcity, which over the past two weeks, a situation exacerbated by the NNPC Limited’s recent revelation of a staggering $6 billion debt.
This financial burden has placed immense strain on the state-owned oil corporation, raising concerns about the sustainability of the country’s fuel supply.
In a recent statement, NNPC Limited’s representative, Soneye, acknowledged the growing concerns surrounding the company’s substantial debt to petrol suppliers.
