The Nigerian government said it will end imports of fuel by 2024, citing the start of operations at the 650,000-barrel-per-day (bpd) Dangote and Port Harcourt refinery.
This was revealed by the Minister of State Petroleum Resources, Timipre in the “PMB Management Scorecard Series (2015-2023)” organized by the Ministry of Information and Culture reported by Nigerian News Agency.
The scorecard series shows the achievements of the Buhari administration.
Impact of the Dangote Refinery: Sylva revealed that the Dangote Refinery would be the largest single-train refinery in the world with an investment of more than $25 billion and would be operational before the end of 2023, in addition to various modular refinery projects in the country.
NAN reported that the Minister said that the Port-Harcourt refinery complex would be ready for production in the first quarter of 2024. It added:
- “With the combined production of the Port-Harcourt refinery, the Dangote refinery and the modular refineries, Nigeria would end the importation of petroleum products into the country.
- “To ensure local supply of private refinery outputs, the federal government deliberately took a 20 percent equity stake in the Dangote Refinery.
- “The federal government acquired a 30 percent equity stake in each of the WalterSmith 5,000 bpd modular refineries in Ibigwe, Imo state and the 10,000 bpd Duport modular refinery in Edo state, among others.”
He added that FG is also addressing the crude oil access challenge faced by modular refineries, citing that the subsidy regime was no longer sustainable and that funds spent on subsidies could be directed towards other development projects and also attract more investment to the oil sector since many individuals would be willing to invest in the construction of refineries.
In case you missed it: The Nigerian Finance Minister, Ms. Zainab Ahmed, revealed that only 3.36 trillion naira was allocated for fuel subsidy in Nigeria’s 2023 budget during a public presentation and 2023 allocation breakdown.
During her presentation, the minister said that fuel subsidy payments will continue until mid-2023, based on the 18-month extension announced in early 2022. This means that fuel subsidy payments will be suspended. in June 2023, after a new administration has been inaugurated following the result of the February-March 2023 general elections.