The Nigerian Government said it will put an end to the importation of fuel by 2024, citing the commencement of operations in the 650,000 barrel per day (bpd) Dangote and Port Harcourt Refinery.
This was disclosed by Minister of State Petroleum Resources, Timipre at the ”PMB Administration Scorecard Series (2015-2023)” organised by the Ministry of Information and Culture reported by the News Agency of Nigeria.
The scorecard series showcases the achievements of the Buhari administration.
Impact of Dangote Refinery: Sylva disclosed that the Dangote Refinery would be the largest single-train refinery in the world with an investment of over $25 billion and be on stream before the end of 2023 in addition to several modular refineries projects in the country.
NAN reported that the Minister said the Port-Harcourt Refinery complex would be ready for production by Quarter one of 2024. He added:
- “With the combined production of the Port-Harcourt refinery, Dangote refinery and the modular refineries, Nigeria would end importation of petroleum products into the country.
- “To ensure local supply of the productions by the private refineries the federal government deliberately took 20 per cent equity stake in the Dangote Refinery.
- “The federal government took 30 per cent equity stake in each of the 5000bpd WalterSmith modular refinery in Ibigwe, Imo state and 10,000 bpd Duport Modular Refinery in Edo state among others.”
He added that FG is also addressing the challenge of access to crude oil being faced by the modular refineries, citing that the subsidy regime was no longer sustainable, and the funds spent on subsidy could be deployed to other developmental projects and also attract more investment into the petroleum sector as many private people would be willing to invest in building refineries.
In case you missed it: Nigeria’s Minister of Finance, Mrs. Zainab Ahmed, revealed that only N3.36 trillion was earmarked for fuel subsidy in Nigeria’s 2023 budget during a Public Presentation and breakdown of the 2023 Appropriation.
During her presentation, the minister said fuel subsidy payments will remain up to mid-2023, based on the 18-month extension announced in early 2022. This means fuel subsidy payments will be stopped in June 2023, after a new administration has been inaugurated following the outcome of the general elections in February-March 2023.