President Muhammadu Buhari is expected to be in Lagos on May 22 to commission the Dangote Refinery.

Bashir Ahmad, special assistant to the president on digital communications, announced the development in a tweet on Sunday.

“Efforts by the Federal Government to make Nigeria self-sufficient in local refining of crude oil to save the scarce foreign exchange used in the importation of petroleum products have received a boost as the 650,000 barrels per day Dangote Refinery, the world’s largest single-train refinery, is set for inauguration on May 22nd, 2023, by President Muhammadu Buhari,” the tweet reads.

The Dangote Refinery is a 650,000 barrels per day (BPD) integrated refinery project located in the Lekki free trade zone area of Lagos state.

The project, which cost an estimated $19 billion to build, is Africa’s biggest oil refinery and the world’s biggest single-train facility.

The integrated refinery and petrochemical project is expected to generate 9,500 direct and 25,000 indirect jobs.

Its output is expected to be more than enough to meet Nigeria’s fuel demands and turn Africa’s largest crude producer into an exporter of refined crude.

Last year, Aliko Dangote, chairman of Dangote Group and Africa’s richest person, said his oil refinery would be commissioned before the end of Buhari’s tenure.

In June 2021, Mele Kyari, group managing director, NNPC, confirmed that the federal government would acquire a 20 percent equity stake in the Dangote Refinery.

Two months later, the federal executive council (FEC) approved the sum of $2.76 billion for the acquisition of a 20 percent minority equity stake in the refinery.

yinkus6750:

Hope they will start refining immediately after commissioning?

CondenseMilk:
I just hope those that steal our crude will allow it to function

MasterJayJay:
Buhari is the minister of petroleum. Warri, Portharcourt and Kaduna refineries are under his domain but they are all dead. He is commissioning a private refinery while the government owed ones are nothing to write home about.

malcom1X:
So this means subsidy is coming. That refinery needs to be tested with subsidy removal to see if it truly works.

More money to dangote more problems to Nigerians.

Parachoko:




It will operate at less than 30% of her capacity throughout this year

thisisit:
THIS IS BAD NEWS FOR NIGERIANS?

THE PRICE OF DANGOTE CEMENT IS HIGHER IN NIGERIA THAN DANGOTE CEMENT IN GHANA.

PREDICTABLY THE PRICE OF DANGOTE PETROL WILL ALSO BE HIGHER IN NIGERIA THAN IMPORTED PETROL

nairalanda1:


Yes, they are dead because to revive them requires the lifting of fuel subsidy, so that the refineries can earn the profit needed to fix themselves.

nairalanda1:


If you were in Dangote's shoes, would you sell fuel at a loss 'to help poor Nigerians'?

MasterJayJay:

You are funny. Buhari pays subsidy on imported petrol. It is even better to produce petrol locally and still pay subsidy than importing and paying subsidy too.

Produced locally and the forex used in importing petrol will be saved.

malcom1X:


I can never be in dangote shoes 😂😂😂

Shey you dey whine me?🤣

nairalanda1:


No it is not because subsidy means one thing...the price of fuel is set below the production price.

Here is how subsidy works in Nigeria.

In 2011....price of fuel was N65, landing cost was N99.

By 2022, price of fuel was N186, landing cost was....N502.

Note that the difference bewtween the two is what covers for subsidy. Now add the fact that fuel consumption has risen between 2011 and 2022, plus the source of income to pay subsidy has fallen due to poor oil revenue over the 11 years, plus mass smuggling puts pressure on the subsidy money, and then NNPC has been forced by Buhari since 2016 to do much of the subsidising.

At the end, it means larger debt, loss of money and so forth.

You that is supporting subsidy, you won't like it if government did the same thing to your business to help the poor.

It is also for the above that we have bad refineries. When subsidy started, we had 2 working refineries, today we have 4 bad ones.

Even with local production, the problem still remains that local producers need to make a profit to keep refineries running well..and they cannot do that with subsidy.

Charisma01:


Continue being decieved. Who annouced to you that landing cost is N502.
Those guys at NNPC are just milking this country dry.
NNPC is the sole importer of petroleum products so who is it paying subsidy to?
Since 1999 our govt has been removing a never ending subsidy.

Parachoko:




It will operate at less than 30% of her capacity throughout this year

Eniitankorede:




Where did you get that from?

thisisit:
THIS IS BAD NEWS FOR NIGERIANS?

THE PRICE OF DANGOTE CEMENT IS HIGHER IN NIGERIA THAN DANGOTE CEMENT IN GHANA.

PREDICTABLY THE PRICE OF DANGOTE PETROL WILL ALSO BE HIGHER IN NIGERIA THAN IMPORTED PETROL

Charisma01:


Continue being decieved. Who annouced to you that landing cost is N502.
Those guys at NNPC are just milking this country dry.
NNPC is the sole importer of petroleum products so who is it paying subsidy to?
Since 1999 our govt has been removing a never ending subsidy.