September 07, (THEWILL) — The production of petrol by the Dangote Petroleum Refinery, which commenced a year ago, has brought the predicted stability to the economy while boosting job opportunities, eliminating queues at the petrol stations and ending total dependence on imported petroleum.
Ahaji Aliko Dangote, Chairman, Dangote Group, took the world by storm on September 3, 2024, when he announced the commencement of petrol production in his refinery.
Although the 650,000-bpd capacity Dangote Petroleum Refinery had begun operations earlier in January that year with the production of diesel and aviation fuel, the production of petrol was the expected game-changer in terminating the nightmare of Nigeria’s energy crisis.
Clutching a bottle of the commodity during a press conference to announce the realisation of the dream, elated Dangote predicted that the domestic production of petrol would, among other things, bring the much-desired stability to the naira.
He emphasised that the development would also alleviate the sufferings of Nigerians who had been locked in the quagmire of the elusive search for a solution to the corruption-ridden petrol subsidy.
According to industry experts, the development was a landmark achievement which no one could have imagined where local production of petrol had stopped at the nation’s refineries for nearly three decades, and importation notoriously elevated to national priority.
“First time in 28 years, we are having petroleum spirits being produced in Nigeria, and with me. This is an achievement really. There are some videos of 1974 which have fuel queues and those fuel queues are still here; with the production of petrol, this will eliminate all fuel queues in Nigeria,” Dangote, said in a live television interview that morning.
Dangote was accurately prophetic by saying that the development will improve the health of everybody.
“This will make sure that you know there is consistent supply to the market. It will also show the real demand of PMS, not paper transaction.
“It will also help to make sure that it corrects this distortion of the naira, brings stability to the naira, brings growth and both development and prosperity,” he said.
It was expected that local production of petrol by the Dangote Refinery will impact billions of dollars of trade in fuel markets regionally and beyond. Nigeria is considered a global demand sink for fuel, receiving almost 250,000 barrels a day in shipments in 2023, mostly from Europe, according to data from analytics firm Vortexa Ltd.
Africa’s most populous nation is in dire need of dollar liquidity that has put its economy under much pressure and frequent decline on its naira.
Consequently, Dangote refinery was expected to reduce the demand for FX by 40 percent. With the elimination of such foreign exchange demands by oil marketers, it will ease pressure on the naira, helping it stabilise and potentially strengthen the currency.
Furthermore, the Dangote Refinery is expected to absorb at least 100,000 Nigerians into direct or indirect jobs upon full operations, reducing the rising rate of unemployment and potentially ending poverty that has enmeshed no fewer than 104 million people in the country.
“This can have significant positive impacts on the economy, including stimulating economic growth, increasing tax revenues, improving fiscal stability, and reducing inflation,” Analysts Data Services and Resources (ADSR), said in its report.
The statistical firm further noted that the success of the petrochemical facility is expected to draw in investors into the oil and gas industry, improving the country’s scanty foreign direct investment. This improved investments in the upstream, midstream and downstream sub-sectors will facilitate growth and ensure development.
In the extensive report, ADSR said “Nigeria, for the past 28 years, has solely relied on imported refined petroleum to meet its domestic needs despite being Africa’s biggest oil producer.
“But with the Dangote Refinery producing PMS locally, the need for importation decreases and potentially meet the needs of other countries in the form of exports.
“This reduces the demand for foreign currency used to pay for imports, potentially easing pressure on Nigeria’s foreign exchange reserves.”
The advisory and research firm noted that the reduced need for foreign currency to import refined products could lead to a strengthening of the Naira, as fewer dollars will be required for these transactions.
“This, in turn, could improve the overall balance of payments,” the report stated.
The ADSR also stated that Dangote refinery’s tax payment will increase Nigerian government revenues that are falling, thereby enhancing the country’s fiscal sustainability.
According to the report, the operation of the facility “may push the government to start working on its own refineries”, leading to competition and stimulating economic growth.
While the refinery is dubbed to ensure effective subsidy management, money used for subsidies can therefore increase spending for public investment in terms of infrastructure.
“Savings from fuel subsidies can be reallocated to other sectors (e.g., health, education, infrastructure) as expenditure.
“Improved revenue is expected to generally lead to less borrowing and improved fiscal sustainability,” the report stated.
Nigeria recorded a balance of payment (BOP) surplus of $6.83 billion in 2024, marking a sharp reversal from consecutive deficits posted in the prior two years.
The latest figures, released by the Central Bank of Nigeria (CBN), signal a broad-based resurgence in the country’s external finances, aided by wide-ranging macroeconomic reforms, stronger trade flows, and a renewed sense of investor confidence.
The BOP, which measures the country’s financial transactions with the rest of the world, swung from a deficit of $1.21 billion in 2023 to a $6.83 billion surplus in 2024, underpinned by a sharp improvement in the current and capital account positions.
Nigeria’s foreign exchange reserves surged to $41.00 billion as of August 19, 2025, the highest in 44 months largely aided by the relief that domestic production of petrol at the Dangote Petroleum Refinery provided. With the removal of the corrosive fuel subsidy linked to massive importation of petroleum products, Nigeria is poised to claim prosperity as a birthright with the relief Dangote Petrol provides.
