The Nigerian National Petroleum Company (NNPC) has started transporting premium motor spirit (PMS) from Dangote’s new $20 billion refinery in Lekki, Lagos. The refinery, which has a capacity of 650,000 barrels per day, is expected to meet not only Nigeria’s fuel needs but also those of the wider sub-Saharan region. This development could ease the ongoing petrol scarcity in Nigeria and reduce reliance on European imports.

Aliko Dangote, the head of Dangote Group, assured that the refinery would provide high-quality fuel and reduce issues associated with dirty fuel. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) stated that the refinery will supply 25 million liters of petrol daily starting in September, increasing to 30 million liters in October.

The operation of the refinery could lead to a decline in the relevance of local depots, according to billionaire Femi Otedola, who emphasized the shift away from reliance on foreign fuel imports. The refinery is also expected to reduce logistics costs, potentially lowering fuel prices, although prices will still be influenced by international crude oil markets.

Meanwhile, NNPC outlets in Lagos and other parts of Nigeria have raised petrol prices to N897 per liter due to supply challenges, exacerbating the fuel scarcity situation in the country.