Aliko Dangote has officially announced the commencement of petrol production at the Dangote Refinery.

During a press presentation on Tuesday, the billionaire thanked President Bola Ahmed Tinubu for enforcing the sale of crude oil in Naira and for the eventual actualization of the project.

“Today is a very special day, which I think Nigeria has not produced petrol, which is gasoline, for many years but I stand with you today,” Dangote said.

“I would like to salute the people of Nigeria and the government of President Ahmed Tinubu for creating the environment for us to thrive and also achieve this monumental task of giving energy to our people for growth, development and prosperity.”

Dangote presented the first sample of petrol to the press and noted that its color is white, like water, because that is the original color of genuine petrol.

He also addressed the issue of round-tripping in the oil industry, where false documentation leads to petrol shortages.

Dangote said the refinery’s operations, would facilitate a precise tracking of petrol consumption across Nigeria, offering a solution to this problem.

“As we have this refinery working, it will show the true consumption of Nigeria,” he said.

“We can track every single loaded trucks and we will try as much as possible to track the loaded trucks, we can tell you where they are.”

Dangote, while stressing on quality, said the petrol from his plant, meets global standards.

“You will not be having an engine issue which a lot of us were having. It won’t happen at all,” the businessman said.

“So the quality here will match that of quality anywhere in the world. We will make sure that nobody will beat us in terms of quality.”

According to Edwin, the Vice President of Dangote Industries Limited, the Nigerian National Petroleum Commission (NNPC) will become the sole buyer of products from Dangote Refinery as it begins production.

“We are currently testing the gasoline, and soon, it will start flowing into the tanks,” Edwin stated. He also noted, “If no one buys it locally, we will export it, just as we’ve been doing with our aviation jet fuel and diesel.”

The Nigerian National Petroleum Corporation Limited (NNPCL) has increased the pump price to N855 per litre following reports that the corporation owes $6 billion and is struggling to meet various financial obligations.

On Sunday, NNPCL announced that the financial challenges afflicting the corporation are the reason for the ongoing fuel scarcity.

The corporation attributed this to the disparity between the pump price and the landing cost.

President Bola Ahmed Tinubu had removed subsidies and floated the Nigerian Naira to ensure prices of commodities are determined by market forces.

While foreign investors and multilateral financial institutions like the International Monetary Fund (IMF) have lauded the policy, Nigerians and local experts have challenged its modalities.

Since the policy was announced on Monday, 29 May 2023, the Nigerian economy has not remained the same as the cost of living has skyrocketed while the inflation rate remains elevated at over 30%.

New job creation, on the other hand, has plunged to nearly zero, with household income and savings declining.

In March, the Manufacturing Association of Nigeria (MAN) said about 767 manufacturing companies had shut down operations while 335 experienced distress in 2023.

The association attributed this to economic challenges like high foreign exchange rates that made it impossible to import, rising inflation, and weak demand due to declining consumer spending.

This was evident in the Gross Domestic Product (GDP) report released for the second quarter of 2024.

The manufacturing sector’s contribution to the GDP declined by 20.95% to 12.68%, down from 16.04% recorded in the fourth quarter of 2023.

Nigeria and Germany are set to surpass $500 million in energy deals in 2024 with both nations looking to break last year’s record in renewable energy and gas exports.

The Consul General of Germany in Lagos, Weert Borner, made this announcement during a press briefing ahead of the 11th German-Nigerian Business Forum and the 12th West African Clean Energy and Environment Exhibition and Conference (WACEE).

Scheduled to take place in Lagos on October 7, 2024, the German-Nigerian Business Forum will be a critical platform for signing two major energy agreements.

These deals, Borner noted, are expected to exceed the $500 million pact sealed between Nigerian and German firms last year.

The forum will be followed by the WACEE event from October 8-9, focusing on renewable energy and environmental sustainability.

“Germany is committed to expanding its investment portfolio in Nigeria, with over 90 active German companies already operating in the country,” Borner stated.

He emphasized Germany’s dedication to fostering stronger economic ties despite the challenges present in Nigeria’s business environment.

The German-Nigerian Business Forum is organized by the Delegation of German Industry and Commerce in Nigeria (AHK Nigeria) in partnership with the Afrika Verein, Berlin, and supported by the German Federal Ministry for Economic Affairs and Climate Action, among other stakeholders.

According to Timo Pleyer, a delegate from AHK Nigeria, the forum will serve as a key venue for top decision-makers from both countries to explore opportunities for collaboration across sectors such as agribusiness, energy efficiency, construction, and technical vocational education and training.

“This forum will highlight the potential for partnerships between Nigeria and Germany, ensuring growth in renewable energy investments and other critical industries,” Pleyer added.

The energy deals on the horizon are expected to further solidify Germany’s position as a leading investor in Nigeria’s energy sector, which is undergoing a transformation toward cleaner, more sustainable sources.

At last year’s forum, agreements were signed in renewable energy projects and gas exports, and this year’s event aims to build on that momentum.

Hilary Elegeonye, Project Manager of the Competence Centre for Energy and Environment at AHK Nigeria, stated that WACCE will attract companies from various parts of the world, with a special emphasis on a balanced mix of Nigerian and foreign participants.

“We want to ensure that Nigerian companies have the opportunity to interact with global industry leaders, exchange ideas, and boost their investments in renewable energy and environmental solutions,” Elegeonye explained.

As Nigeria continues to diversify its economy and look for sustainable growth in energy, the expanding partnership with Germany highlights the nation’s commitment to leveraging foreign investment and expertise to meet its ambitious energy goals.

With over $500 million in deals expected to be signed, the future of Nigerian-German cooperation in energy looks brighter than ever.