Dangote petrol production will boost Nigeria’s forex reserves – Rep

The House of Representatives member representing Oredo Federal Constituency of Edo State, Esosa Iyawe, has hailed the Dangote Petroleum Refinery for the start of production of Premium Motor Spirit, better known as petrol.

Iyawe said this will significantly help to boost Nigeria’s foreign exchange reserves, as the importation of petrol will drop.

On September 3, 2024, the Dangote refinery began the production of petrol, marking the first time in 28 years Nigeria locally commenced production of the product.

Nigeria has been plagued with importing petrol for decades, despite being one of the largest producers of oil in the world – eroding the largest chunk of the country’s foreign exchange.

With a capacity of 650,000 barrels per day, the Dangote refinery, Africa’s largest refinery, is expected to significantly cater to the needs of the West African market.

Iyawe, an engineer, was among federal lawmakers who condemned the attempt by the Nigerian Midstream and Downstream Petroleum Authority to frustrate the Dangote refinery back in July, and consequently demanded the sack of the NMDPRA CEO, Farouk Ahmed, over his “unpatriotic’ remarks about the Dangote refinery.

In a statement, Iyawe congratulated Dangote for the watershed moment. He highlighted the monumental impact the Dangote refinery would have on the Nigerian economic landscape.

He said the plant would end the country’s decades of reliance on fuel importation, boosting the nation’s foreign exchange reserves, job creation, and improving the value chain in the sector.

“Congratulations to Aliko Dangote on the monumental achievement in PMS production,” Iyawe said.

He added, “In a remarkable leap for Nigeria’s industrial sector, Aliko Dangote has his commitment to national development with the successful production of Premium Motor Spirit at his functioning refinery. This monumental achievement is a pivotal moment for Nigeria’s economic landscape.

“The Dangote refinery, now operational, marks a significant milestone in the country’s quest for self-sufficiency in petroleum products. By producing PMS domestically, Dangote has addressed a long-standing challenge faced by Nigeria— a nation historically reliant on imported fuel.

“This stride not only promises to enhance fuel availability but also aims to stabilise prices and mitigate the economic impacts of fuel importation. This stands out as a beacon of progress in Nigeria’s industrial sector.

“The refinery’s capacity to produce high-quality PMS is expected to reduce the country’s dependence on imports, thereby conserving foreign exchange reserves and fostering economic stability. This development aligns perfectly with Nigeria’s broader goals of economic diversification and industrial growth.”

He noted that beyond the immediate economic benefits, this achievement is likely to generate substantial employment opportunities and stimulate local industries, creating a ripple effect of positive economic impacts.

“The refinery’s operation will bolster the local economy, support small and medium-sized enterprises, and contribute to the overall development of the nation’s infrastructure,” the lawmaker stated.