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Dangote Refinery Diesel, Aviation fuel hit market January, petrol delayed
It was gathered on Sunday that the facility would require a minimum of six million barrels of crude oil to kick-start the full production of refined petroleum products including AGO, PMS, Jet A1 and Dual Purpose Kerosene, otherwise called kerosene.
But what the refinery got last week was one million barrels of crude, while the remaining five million barrels would arrive at the $20bn facility in another five installments.
The Dangote Petroleum Refinery and Petrochemical Project, a subsidiary of Dangote Industries Limited, is a 650,000 barrels per day crude oil refinery, located in Dangote Industries Free Zone, Ibeju-Lekki, Lagos, Nigeria.
Dangote Petroleum Refinery with the capacity to refine 650,000 barrels of crude oil per day covers an area of approximately 2,635 hectares and is located in the Lekki Free Trade Zone in Lagos.
On November 2, 2023, The PUNCH reported that the failure to supply crude oil to domestic refineries, including the multi-billion dollar Dangote refinery, stalled the production of refined petroleum products at the facilities.
The report also stated that the lack of crude oil supply came as the 650,000 barrels per day Dangote Refinery in Lagos missed the October production projection it had earlier set.
It pointed out that the October production target miss made it the second time in 2023 that Dangote Refinery would raise hopes in Africa, especially Nigeria, of a possible end to petrol importation.
Following The PUNCH’s report, the Nigerian National Petroleum Company Limited swiftly declared the next day November 3, 2023, that it was set to provide six million barrels of crude oil to the Dangote Refinery. It, however, has yet to do so.
But on Friday, the management of Dangote Refinery confirmed the receipt of one million barrels of crude oil, adding that this would lead to the production of refined products at the facility.
“In a major step towards boosting Nigeria’s domestic refining capacity and attaining energy security (self-sufficiency), Dangote Petroleum Refinery and Petrochemicals plant has purchased one million barrels of Agbami crude grade from Shell International Trading and Shipping Company Limited, one of the largest trading companies in Nigeria as well as globally, trading over eight million barrels of crude oil per day,” the oil firm had stated.
But when contacted on Sunday to confirm whether the company would start pumping out refined PMS based on the one million barrels of crude that it received on Friday, an official of the firm stated that what Nigerians should expect in January would be diesel and aviation fuel.
Six million barrels
The official explained that the facility required a minimum of six million barrels of crude to commence the full production of refined petroleum products, but what it got last week was only one million barrels.
“This supply will facilitate the initial run of the refinery as well as kick-start the production of diesel, aviation fuel, and LPG, before subsequently progressing to the production of Premium Motor Spirit,” the company stated.
It said this latest development would play a pivotal role in alleviating the fuel supply challenges faced by Nigeria as well as the West African countries.
The firm stated that the facility was designed for 100 percent Nigerian crude with the flexibility to process other crudes, adding that the 650,000 barrels per day refinery could process most African crude grades as well as Middle Eastern Arab Light and even United States Light tight oil, as well as crude from other countries.
“Dangote Petroleum Refinery can meet 100 percent of Nigeria’s requirement of all refined products, gasoline, diesel, kerosene, and aviation jet, and also have a surplus of each of these products for export.
“The refinery was built to take crude through its two SPMs located 25km from the shore and to discharge petroleum products through three separate SPMs. In addition, the refinery has the capacity to load 2,900 trucks a day at its truck-loading gantries.
“Dangote Refinery has a self-sufficient marine facility with the ability to handle the largest vessel globally available. In addition, all products from the refinery will conform to Euro V specifications.
“The refinery is designed to comply with US EPA, European emission norms, and (defunct) Department of Petroleum Resources emission/effluent norms as well as African Refiners and Distribution Association standards,” the company stated.
The President, Dangote Group, Aliko Dangote, was quoted as saying, “We are delighted to have reached this significant milestone. This is an important achievement for our country as it demonstrates our ability to develop and deliver large capital projects.
“Our focus over the coming months is to ramp up the refinery to its full capacity. I look forward to the next significant milestone when we deliver the first batch of products to the Nigerian market.”
On his part, the Country Chairman, Shell Companies in Nigeria, Osagie Okunbor, said, “We welcome the startup of a refinery that is designed to produce gasoline, diesel, and low-sulphur fuels for Nigeria and across West Africa and are happy to be enabling it.”
A document detailing some of the attributes of the facility, obtained by one of our correspondents, showed that tank farms in the facility have a total of 177 tanks with a cumulative capacity of 4.74 billion litres, and total tanker loading of 2,900.
For product evaluation, the report stated that the dispatch facilities by road (tanker) for the products (gasoline, diesel, kerosene/jet fuel, propane and slurry) was up to 80 percent of the total production and up to 75 percent through marine facilities.
It stated that the plant would operate a year-round operation for road loading operations, adding that on logistics, over 1,029 trucks would improve the capacity of the local logistics.
On employment generation, the document stated that over 100,000 indirect employment would be created at retail outlets, adding that 26,716 filling stations and 129 depots would come onstream in Nigeria.
It stated that the facility would ensure the ease of availability of products and help open up service stations, while 16,000 trucks for transportation would create additional jobs.
“In terms of employment generation, over 30,000 are currently working at the petroleum refinery project site, through various contractors. When operational, the petroleum refinery is going to generate over 100,000 direct and indirect jobs for Nigerian youths,” the company stated in the document, adding that the refinery would create a $21bn market annually for Nigerian crude.
The facility has its own power plant with a capacity of 435 megawatts.
“The refinery has its own dedicated steam and power generation system with adequate standby units for reliable/uninterrupted utility supply to operating plants,” the company stated in the document.
It stated that Dangote Industries had developed a port and constructed quays with a load-bearing capacity of 25 tonnes/sq.m to bring Dimensional Cargoes close to the site directly to handle liquid cargoes.
“The Jetty is situated at a distance of 12.3km from the refinery thereby effectively reducing the travel time,” it stated.
Otedola commends refinery
Reacting to the development, billionaire businessman, Femi Otedola, said Dangote Refinery would champion energy security in Nigeria.
Otedola said this on Sunday on his X (formerly Twitter ) handle, where he congratulated Africa’s richest man and his “bestie,” Aliko Dangote, on the commencement of production of the refinery, which was commissioned in May, before the expiration of the tenure of the former president, Muhammadu Buhari.
He said, “By meeting our requirements for all refined petroleum products, it will champion energy security and independence for our nation and act as a catalyst for a new era of prosperity for the subcontinent. It promises economic transformation for Nigerians today and for generations to come.”
Otedola started off his piece on the social media platform by congratulating Dangote.
650,000 barrels
“I heartily congratulate my bestie #AlikoDangote as the 8th Wonder of the World – the $20bn #DangoteGroup Refinery – officially commences production. The Dangote Petrochemical Complex, which consists of the world’s largest single-train 650,000 barrels per day petroleum refinery, one million metric tonnes of polypropylene per annum facility, and two of the world’s largest fertiliser trains, with a capacity of producing three million tonnes of urea, is much more than just an industrial milestone; it’s a testament to the visionary leadership and relentless pursuit of excellence of one of Africa’s finest and most dogged patriots,” he said.
Providing more details, Otedola revealed that he had a front-row seat in the conceptualisation and process of establishing the refinery, saying “I am familiar with the sleepless nights you’ve had to work through over the last decade to bring this dream to fruition.”
He added, “This refinery is a beacon of hope for millions of Nigerians and Africans. It is also at the vanguard of championing environmental sustainability. With its carbon capture technologies and storage processes, it will capture up to 90 percent+ of the CO2 emitted and also play a significant role in reducing well-to-tank carbon emissions from crude oil maritime transportation, thereby playing its own role in helping Nigeria meet its target for net-zero emissions by 2060.
“The refinery re-circles 100 percent of its water. The heat coming out of the process is fully captured to produce 50MW of power. Dangote is also producing Euro-5 to replace the bad Euro-5 that has been dumped in Africa for a long time.
“Shipping 65,000 barrels per day of crude out of Nigeria and 650kbpd in refined products to Nigeria and nearby countries which is 480 ships of one million barrels per day will save 1.5m to 2.5m tonnes of CO2 emissions. This will help the environment.”
Also speaking on the development, the National Public Relations Officer, Chief Ukadike Chinedu, said the move by the management of Dangote Refinery was commendable.
“We are optimistic to see the commencement of refined products from the facility and we are ready to party Dangote in ensuring the distribution of these refined products across the country,” he stated. (The PUNCH)
News
Sanwo-Olu, Lai Mohammed, Gbenga Daniel to discuss 2027 elections, insecurity at 7th Freedom Online lecture
Challenges facing the economy and insecurity, especially associated with elections in a developing economy like Nigeria, will be the focus of discussion at the seventh yearly lecture of Freedom Online (www.freedomonline.com.ng) on September 3 in Lagos.
Freedom Online, according to a statement by its Managing Director/Editor-in-Chief, Gabriel Akinadewo, is focusing on how to tackle insecurity during the lecture “because it has become a monster, threatening to consume the nation-state called Nigeria.
“What does the future hold for Nigeria after the 2027 general elections? How will the election be conducted in a way that will be acceptable to all? Will the outcome lay a solid foundation for the future of the country?
“We believe that actions of politicians, security agents and INEC officials, before, during and after the election will, one way or the other, decide the fate of the more than 200 million Nigerians in this geographical space. Obviously, insecurity, part of which is thuggery during elections, leads to poverty, underdevelopment and other social vices. Nigeria’s political, economic and social fabric is disintegrating because of this time bomb and the outcome of the election will go a long way to decide Nigeria’s future in global affairs”.
Akinadewo said Governor Babajide Sanwo-Olu of Lagos State is the Special Guest Speaker while former Information & Culture Minister, Alhaji Lai Mohammed and former Ogun State Governor, Senator Gbenga Daniel, are the Chairman and Special Guest of Honour respectively.
The President of the Nigerian Guild of Editors (NGE) and Editor of Vanguard, Eze Anaba, is the Chief Host.
…Property Enumeration App to drive new land revenue regime
The Enugu State Internal Revenue Service (ESIRS) has announced a drastic reduction in land use charges payable by property owners across the state as part of measures to encourage tax compliance and broaden the state’s revenue base.
The Chairman of ESIRS, Mr Emmanuel Ekene Nnamani, disclosed this on Monday while briefing journalists on the activities and achievements of the agency in its three years under his leadership.
Under the revised arrangement, property owners in Independence Layout now pay N70,000 annually, while those in Abakpa pay N20,000. Owners of village houses, according to Nnamani, will pay N10,000 annually as land use charge.
Nnamani also announced plans to commence the implementation of a Property Enumeration App, which will facilitate the identification and enumeration of properties across the state and provide a database for the assessment and collection of land use charges.
He said students would be engaged to participate in the enumeration exercise, with each student expected to receive payment on a weekly basis, based on the number of houses enumerated.
According to him, the initiative would help ESIRS establish an accurate property register while creating opportunities for students to earn income through the exercise.
Nnamani explained that the Property Enumeration App would assign identification to properties and their owners, making it easier for the government to determine taxable properties and improve compliance.
He said the exercise was part of ESIRS’ broader strategy to expand the tax net and bring previously untapped sources of revenue into the formal revenue system.
The ESIRS chairman said the agency was also expanding its revenue collection activities to o other areas including haulage fees, land use charges, capital gains tax, stamp duties and withholding tax.
He disclosed that withholding tax would soon become operational in the state, urging individuals and organisations required to deduct the tax to ensure that the deductions were properly remitted to the government.
Giving an insight into the performance of ESIRS under his leadership, Nnamani said the agency had recorded a significant increase in internally generated revenue since 2023.
He said the state generated N37 billion in 2023, rising to N108.5 billion in 2024, while revenue increased substantially to N406.7 billion in 2025, representing tax and non-tax revenues.
Nnamani attributed the growth to the reforms introduced under Governor Peter Mbah’s administration, particularly the autonomy granted ESIRS and the deployment of technology for revenue collection.
He said the agency inherited a system characterised by poorly motivated personnel and fragmented revenue collection, but the autonomy granted by the state government enabled ESIRS to embark on fundamental reforms.
“Our Governor came with disruptive innovation and now it is time to give account,” Nnamani said.
He explained that the autonomy granted to ESIRS was backed by legislation, transforming the agency into a one-stop shop for revenue collection in the state.
According to him, ESIRS moved away from a mono-payment gateway operated through Interswitch and expanded the system to seven payment gateways, including UPS and Flutterwave.
He said taxpayers could now make payments through banks, transfers and more than 300 Point-of-Sale (POS) terminals, including from the comfort of their homes and even during weekends.
The development, he said, had significantly improved convenience and reduced opportunities for revenue leakages.
Nnamani said the agency also embarked on extensive training of its personnel and declared an emergency in which every staff member was required to have access to a laptop or tablet.
He added that ESIRS invested in reliable internet connectivity and solar energy to ensure that its operations were not disrupted by power challenges.
The ESIRS chairman said the agency had also banned cash payments as part of measures to strengthen transparency and accountability in revenue collection.
He said several revenue agencies that previously operated independently had been unbundled and brought under a centralised system, while ESIRS collaborated with relevant unions and revenue agencies to improve its operations.
According to him, the reforms were particularly significant in the informal sector, where revenues were previously paid to non-state actors before the new system was introduced.
Nnamani urged residents and businesses to familiarise themselves with the state’s tax laws, stressing that the agency was not interested in imposing arbitrary taxes but in ensuring compliance with existing legislation.
He said the law provides for certain exemptions, but taxpayers seeking exemption must undertake the required tax filing.
He noted that ESIRS was currently not implementing some provisions of the tax law to their full extent, citing the provision requiring the payment of one per cent of turnover in certain circumstances.
“We are only collecting N36,000 and people are complaining. I’m a tax collector and you have to convince me why you should not pay,” he said.
He urged taxpayers to study the tax laws and understand their obligations rather than evade payment.
The ESIRS boss further disclosed that the state was collecting Development Levy from new construction projects, noting that between 20 and 25 new buildings were being commenced daily across the state.
He said the levy was N150,000 in Enugu North Local Government Area, N100,000 each in Enugu South and Enugu East, N80,000 in Nsukka, while the rate for other local government areas stood at N50,000,”and you must pay to be permitted to commence development of the property”.
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He said ESIRS was also strengthening the collection of capital gains tax, particularly from property transactions, as well as stamp duty.
Nnamani maintained that the objective of the reforms was to create a sustainable and transparent revenue system capable of funding government programmes without placing undue pressure on taxpayers.
The chairman also dismissed concerns that the ongoing tax reforms were designed to frustrate businesses, particularly Igbo traders.
He said the forthcoming implementation of enhanced tax-compliance measures at both the federal and state levels should not be misconstrued as an attempt to shut down businesses.
According to him, the reforms are aimed at ensuring that individuals and businesses fulfil their statutory tax obligations.
“It is not aimed at shutting down Igbo business. People should pay their taxes and not evade it,” he said.
Nnamani said ESIRS would continue to expand the tax net while deploying technology to make payment easier, improve transparency and ensure that revenue due to the state was properly collected.
He said the agency’s ultimate objective was to build a modern revenue administration system in which taxpayers could meet their obligations conveniently while the state would accurately account for every naira collected.
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