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Buhari to commission 650,000 bpd Dangote Refinery January 24

Is the giant of Africa finally awakening?

President Muhammadu Buhari is expected to commission the 650,000 barrels per day (bpd) Dangote refinery on January 24, a source close to the project has revealed. The development could ease the supply of petroleum products in the country.

The integrated refinery and petrochemical complex in the Lekki Free Zone near Lagos, Nigeria, will produce Euro-V quality gasoline and diesel, as well as jet fuel and polypropylene and will likely generate 4,000 direct and 145,000 indirect jobs.

It is expected to double Nigeria’s refining capacity and help in meeting the increasing demand for refined petroleum products while providing cost and foreign exchange savings. It is estimated to have an annual refining capacity of 10.4 million tonnes of petrol.

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According to the World Bank, the refinery is expected to boost Nigeria’s external earnings by drastically reducing imports of fuel, contributing to the regional supply of petroleum products.

The bulk of the crude for the refinery operations is expected to come from Nigeria, given that the Nigerian National Petroleum Company Limited (NNPC) holds a 20 percent stake in the company on behalf of the federation, but the declining crude output would present a challenge.

The NNPC says it would supply half of the crude required by the plant, and if this is sold at market price, it would be impractical to continue paying subsidies.