The Federal Authorities has declared its full assist for Dangote Refinery’s plan to spice up manufacturing capability to 1.4 million barrels per day (bpd), describing the challenge as a “game-changer” for Nigeria, West Africa, and your complete continent.
Minister of State for Petroleum Assets (Oil), Heineken Lokpobiri, made this recognized on Monday in Lagos whereas talking on the opening of the nineteenth Africa Downstream Power Week, themed “Power Sustainability: Progress Past Boundaries and Competitors.”
Lokpobiri mentioned the federal government would work intently with the Dangote Group to make sure the success of the refinery’s growth, which, when accomplished, will make it one of many largest refining services on the planet.
“I obtained the excellent news that the Dangote Refinery is increasing its capability to 1.4 million barrels per day. That won’t simply save Nigeria or West Africa, it’s going to save Africa and, certainly, make an affect globally. The Federal Authorities will assist him all the way in which to undertaking that purpose,” he mentioned.
A significant milestone for Africa’s power independence
The minister described the refinery’s growth plan as a serious milestone for Africa’s power independence and a validation of the federal government’s coverage route.
Lokpobiri defined that the elimination of gasoline subsidy and the liberalisation of the downstream petroleum sector had been key coverage choices geared toward making a viable atmosphere for personal sector funding.
“The primary purpose President Bola Tinubu introduced the elimination of gasoline subsidy on his first day in workplace was that, with subsidies, the personal sector couldn’t develop. The downstream can solely thrive when the fitting enterprise atmosphere permits personal capital to circulate in, make investments, and maximise alternatives,” the Minister mentioned.
He famous that whereas some Nigerians initially misunderstood the coverage, it has now led to a extra secure and aggressive petroleum merchandise market.
“With deregulation and liberalisation, there may be now wholesome competitors. Costs are secure, availability has improved, and merchandise are extra accessible and inexpensive regardless of challenges,” he mentioned.
Lokpobiri pressured that if the federal government had not eliminated subsidies, Nigeria’s power sector could be going through extreme difficulties at this time.
FG restates dedication to deepen oil and gasoline funding
The minister reaffirmed the Federal Authorities’s dedication to deepening funding within the oil and gasoline sector, saying the worldwide dialog on power transition is step by step shifting to a extra balanced perspective that recognises the continued significance of hydrocarbons.
The Minister mentioned, “The world has realised that power transition can’t occur in a vacuum. At the same time as we pursue cleaner sources, the worldwide financial system nonetheless will depend on oil and gasoline. With out substantial funding in these assets, there will likely be no monetary capability to fund the power combine all of us want.”
Citing latest United Nations reviews, Lokpobiri mentioned the world wants to take a position about $540 billion yearly in oil and gasoline restoration and associated infrastructure to fulfill rising power demand and guarantee international power safety.
He added that discussions on local weather change and net-zero emissions stay related, however the realities of worldwide inhabitants progress and consumption patterns make it clear that hydrocarbons would proceed to play a central position for many years to come back.
“Africa, with a inhabitants exceeding 1.4 billion folks, can’t afford to disregard funding in oil and gasoline.
“Increasing exploration, manufacturing, and refining capability is essential not just for self-sufficiency but additionally for the continent’s financial stability,” he mentioned.
Lokpobiri famous that Nigeria’s downstream sector is step by step stabilising following the elimination of subsidies, with improved product availability and elevated investor confidence.
The minister mentioned, “Subsidy was not sustainable; it discouraged personal funding and positioned a heavy burden on authorities funds.
“What we’re seeing at this time is a extra aggressive atmosphere that promotes effectivity and personal participation.”
Again story
On Sunday, Nairametrics reported that the Dangote Refinery introduced plans to develop its manufacturing capability from 650,000 barrels per day to 1.4 million barrels per day, a transfer that can make it the most important refinery on the planet as soon as accomplished, surpassing India’s Jamnagar Refinery.
Talking at a press convention in Lagos, the President of the Dangote Group, Aliko Dangote, mentioned the growth demonstrates the corporate’s confidence in Nigeria’s financial future.
Be First to Comment