Africa’s largest diesel and jet fuel refinery has started production, the company said on Saturday, calling it a “big day for Nigeria” after years of delays in building the plant.
Built by the continent’s richest man, the 650,000 barrels per day (bpd) Dangote refinery could be a game-changer when fully operational, helping to end Nigeria’s dependence on fuel imports.
The delayed major project built by Nigerian billionaire Aliko Dangote said it hoped to have products on the market this month, but it was unclear when the refinery would reach full production or start refining gasoline.
The facility is located on 2,635 hectares (6,500 acres) of land in the Lekki Free Zone on the edge of Lagos city and cost about $19 billion, according to local media.
“Dangote Oil Refinery has started production of diesel and jet fuel,” the group said. “This is a big day for Nigeria. We are happy to have reached this important milestone.”
Although Nigeria is Africa’s leading energy producer, it has relied on imports for most of the fuel it consumes due to a lack of refining capacity.
The Dangote refinery is expected to not only make it self-sufficient but also allow it to export fuel to neighboring West African countries, potentially transforming oil trade in the Atlantic basin.
Company officials told Reuters that testing could begin this week after the refinery received a sixth cargo of crude oil on January 8.
Nigeria is swapping billions of dollars worth of crude for gasoline it had subsidized for years to keep prices cheap for its domestic market.
Fuel imports and subsidies caused a huge foreign exchange drain when Nigeria was struggling with declining oil revenues and foreign exchange shortages.
The refinery, which was scheduled to open for the first time in 2021, was officially inaugurated by then President Muhammadu Buhari earlier this year and was due to start operations in June.
Since taking office in May last year, President Bola Ahmed Tinubu has ended the long-standing fuel subsidy and channeled the naira currency into economic reforms he says will attract foreign investment and create long-term growth.