Nigeria’s federal government on Sunday expressed excitement over the commencement of lifting of Premium Motor Spirit (PMS), also known as petrol from the 650,000 bpd Dangote Refinery in Lagos, stressing that it marked the return of industrialisation in Nigeria.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, who led the government delegation to the refinery, described the event as epoch-making and a major win for local refining.
“This is the resumption of Nigeria’s march toward industrialisation. It represents a return to what we once had—local refining and local supply of petroleum products in the Nigerian market. It has been decades since we last achieved this, but we have it today,” he said.
The minister, who was accompanied by Dr. Zacch Adedeji, Executive Chairman of the Federal Inland Revenue Service (FIRS) and Chairman of the Technical Sub-Committee on naira-based crude sales to local refineries, also stated that the initiative will ensure energy self-sufficiency and security in Nigeria.
He explained that the availability of the product to Nigerians will end perennial scarcity and long queues. He noted that this aligned with President Bola Tinubu’s vision of adding value to raw materials before they leave the country.
According to him, Tinubu originated the concept of the free trade zone during his term as governor of Lagos State.
“Today, you have taken an important step towards energy self-sufficiency in Nigeria. We have advanced toward energy security and the implementation of the government’s policy of boosting domestic investment.
“It is President Tinubu’s vision that no raw material should leave Nigeria’s shores without some form of value being added. Commendation is due to His Excellency, who facilitated the supply of crude to local refineries in naira by ensuring that NNPC provides crude to these refineries,” he added.
Edun lauded the President of Dangote Industries Limited, Dangote, and his team for restoring Nigeria’s status as a producer of refined products, nearly three decades after the country ceased local refining.
He praised Dangote for his patriotism and for exemplifying the can-do spirit of Nigeria, despite scepticisms from many quarters about the feasibility of establishing a refinery.
“We congratulate Dangote, Africa’s foremost businessman and industrialist, and arguably one of the top investors in the world, on this day of triumph and success. They said it couldn’t be done, that we could not produce PMS from this facility, but today we are all witnesses to the commencement of PMS loading here.
“This refinery is producing PMS that is sufficient for the entire Nigerian market, with a surplus for export. We call on other domestic refiners to not only supply the local market but also to change the narrative by producing petroleum products for the sub-region and beyond. This will generate additional foreign exchange revenue for the betterment of the economy. We are thrilled that this day has arrived,” he said.
Praising the quality of the products from the refinery, Edun noted that the facility’s global competitiveness enables it to export its products and sets a benchmark for Nigerian companies to compete favourably on the international stage.
He also commended the technical sub-committee on naira-based crude sales to local refineries for finalising all formalities, ensuring a smooth supply of crude to local refineries. The minister added that Tinubu was also focusing on enhancing food security.
In the same vein, Vice President of Oil and Gas at Dangote Industries Limited (DIL), Devakumar Edwin, stated that the commencement of PMS production from the refinery fulfilled Dangote’s vision of addressing energy supply challenges in Nigeria.
He emphasised that it was a point of pride that a Nigerian company has designed and built the world’s largest single-train refinery complex, which will not only make Nigeria self-sufficient in refined products but also a net exporter.
“If you consider the refinery’s capacity for PMS alone, processing 52,000 barrels of crude each day generates more than 54 million litres of PMS. Additionally, the refinery can produce other products. Specifically, 44 per cent of the refinery’s capacity can meet 100 per cent of domestic needs, while 56 per cent is allocated for export. It is indeed a massive refinery,” he said.
Edwin maintained that the refinery will significantly benefit the country’s economy by reducing Nigeria’s foreign exchange demand by at least 40 percent while also generating foreign earnings through exports.
“It will not only substitute imports but also boost forex generation through export. We will save foreign exchange in two ways: first, by reducing expenditures on importing petrol, jet fuel, diesel, and other products, and second, through the revenue generated from exports,” he said.
He also addressed concerns about tankers overwhelming the Ibeju-Lekki area, as seen in Apapa. Edwin assured that the refinery has made provisions for loading petroleum products via its jetty and emphasised that it includes a self-sufficient marine facility capable of handling the world’s largest vessels.
He said that for 52 years, the President of Dangote Group, Dangote had been trying to solve the problem of Premium Motor Spirit (PMS) or petrol supply in Nigeria using local solutions, saying that finally, the solution had come.
Edwin said: “My President has been showing in his presentations that 52 years ago, we were trying to see how to solve the problem of PMS supply and the queues. Now, after 52 years, we have a solution. And the solution is local production of PMS and it is from a Nigerian oil company. And an Engineering, Procurement and Construction (EPC) contractor, it was constructed by a Nigerian company.
“So, it’s a matter of pride that a Nigerian oil company, constructed by a Nigerian-owned company, is able to generate PMS from the local crude. This will not only meet the entire requirement of Nigeria, but can also have surplus to export. So, it is a time and moment of great pride to every Nigerian.”
Emmanuel Addeh, Ozioma Samuel-Ugwuezi
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