Femi Otedola, a billionaire investor and one of Nigeria’s most powerful businessmen, has praised the start of petrol distribution from Africa’s richest man Aliko Dangote’s 650,000-barrel-per-day refinery, indicating a dramatic shift in the country’s oil industry. The Lagos-based Dangote Oil Refinery, which began putting petrol onto trucks on Sunday, September 15, is regarded as a watershed moment in Nigeria’s decades-long struggle with fuel imports and shortages.
Otedola, chairman of Geregu Power and First Bank of Nigeria Holdings Plc, voiced his confidence, describing the achievement as a watershed moment in Nigeria’s path to energy independence. In a brief statement, he credited Nigerian President Bola Ahmed Tinubu with facilitating the milestone. “Congratulations to President Tinubu for making this a reality!” Fuel queues are no longer an issue as Dangote Refinery begins loading PMS today,” Otedola stated.
According to NNPC Spokesperson Olufemi Soneye, the refinery, which has been in development for more than a decade, sold its petrol to the Nigerian National Petroleum Company Limited (NNPC) for N898 ($0.546) per liter. The trucks began transferring fuel to various sections of the country, alleviating concerns about ongoing fuel shortages. By Sunday, at least 70 trucks had been filled, with the NNPC denying claims that the petrol was purchased at N760 ($0.462) per liter.
The NNPC had previously reported that over 300 trucks had arrived at the refinery ahead of the Sunday loading, ushering in what Otedola characterized as a “death blow” to Nigeria’s petroleum import racket. This long-standing network of fuel importers has benefited from Nigeria’s reliance on imported petroleum products, despite the fact that the country is one of the world’s top oil producers.
Otedola, who made his early fortune through Zenon Petroleum and Gas Limited, commended Dangote’s success as a landmark event. He stated that the refinery’s opening marks the completion of a 25-year campaign to reduce Nigeria’s reliance on foreign petroleum. In a letter posted to his social media account, Otedola reflected on the journey he and Dangote took years ago to overhaul Nigeria’s energy industry.
“The Dangote Refinery delivers a death blow to the fuel import cartels that have held Nigeria hostage for decades,” Otedola said. “This is more than just fuel; it’s about economic emancipation. It represents a transition toward a new Nigeria, one that produces what it consumes.
He drew comparisons with Dangote’s impact on the cement business, which shifted from a net importer to a regional exporter under his direction. Otedola also encouraged depot owners, who had previously hoarded imported petroleum, to adapt to the new situation. “The depot owners should take heed — it’s time to dismantle those depots and sell them as scraps while the market is still high,” he suggested, citing the disruption that domestic fuel production will bring in the industry.
The introduction of petrol from the Dangote Oil Refinery is projected to lessen Nigeria’s dependency on imported fuel and increase availability of petroleum products, thereby driving down pump prices across the country. While gasoline marketers are optimistic about price reductions, they remain cautious as they await more detailed pricing information from the refinery.
Otedola, one of Africa’s richest men with a $1.4 billion fortune, sees the Dangote Refinery’s success as a validation of his long-held aim to reshape Nigeria’s energy landscape. “This is what can be achieved with the audacity to dream and the tenacity to see it through,” he remarked, reflecting on his previous enterprises and his long-standing friendship with Dangote.
The Dangote Oil Refinery, Africa’s largest and one of the world’s largest single-train refineries, has the potential to change not only Nigeria’s petroleum supply chain, but also its economy. With domestic manufacturing now beginning, the days of long fuel lines and reliance on expensive fuel imports may be a thing of the past, as Otedola optimistically anticipates.
