Nigeria is set to stop the importation of petroleum products by mid-2023.
This will be made possible by a combination of output from the Dangote Refinery (scheduled to begin next year) and state-owned refineries which would eliminate any importation of petroleum products into the country.
The group chief executive officer, Nigerian National Petroleum Company (NNPC) Limited, Mele Kyari, stated this at a press briefing at the State House Abuja.
According to him, because Nigeria’s population, the middle class as well as demand has grown, the volume of petrol required in the country has increased.
“Even if all our four refineries in three locations are operating at 90 per cent of installed capacity, they will only be able to raise 18 million litres of Premium Motor Spirit (PMS). “That means even if all of them are working today, you would still have a net deficit of PMS to import into this country,” he said.
Kyari said NNPC Ltd owns 20 per cent equity in the Dangote Refinery and has a first right of refusal to supply crude oil to the plant.
“But we saw this energy transition challenge coming. We knew that time would come where you would look for people to buy your crude and you would not find it,” he said.
“And that means we have locked down the ability to sell crude oil for 33,000 barrels minimum by right for the next 20 years and by right also we have access to 20 percent of the production from that plant.”
The group CEO added that the Dangote refinery would begin producing by the middle of next year, adding that it can produce up to 50 million litres of PMS.
“The combination of that and our ability to bring back our refinery will eliminate any importation of petroleum products into this country next year. You would not see any importation into this country next year,” Kyari said.
“This is very practical. As a matter of fact, when we are done with our own refineries and the Dangote refinery, there remain other small initiatives that we are doing, small modular condensate refineries that we are building. If that happens and we are very optimistic it will happen, you would see that this country will now be a net exporter.
“As a matter of fact, it will be a hub for the export of petroleum products, not just to the West African sub-region. This will happen. The flow of supply will change by the middle of next year. You will not need the importation of petroleum products into this country by the middle of next year.”
