The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, affirmed the Federal Government’s commitment to supporting the $20 billion Dangote Refinery located near Lagos.
Speaking before a Senator Opeyemi Bamidele-led Ad-Hoc Committee on alleged economic sabotage in the petroleum industry in Abuja, Lokpobiri emphasized the government’s dedication to backing the Dangote Refinery and modular refineries. He highlighted ongoing efforts to resolve issues impacting the industry and reiterated the government’s responsibility to protect all stakeholders in the oil sector. Additionally, the minister expressed the government’s determination to conclude the rehabilitation of the three state-owned refineries, aiming to reduce the level of petroleum product imports and cater to the needs of Nigerians.
In late July, the Federal Executive Council (FEC) instructed the Nigerian National Petroleum Company (NNPC) Limited to sell crude oil to Dangote Refinery and other local refineries in naira rather than in United States dollars. This measure aimed to alleviate the country’s foreign spending pressures, stabilize pump prices of petroleum products, and bolster local production of refined petroleum products.
Dangote Refinery, owned by Aliko Dangote, has faced challenges with crude supply, amid regulatory inquiries into the quality of its petroleum products. Despite these challenges, the refinery commenced operations in December with a production capacity of 350,000 barrels per day, with plans to reach its full capacity of 650,000 barrels per day by the year end. While the refinery has started supplying diesel and aviation fuel to marketers, petrol supply is expected to begin in August despite regulatory resistance.
