Ex-Minister, Shittu Urges Full Support for $20bn Dangote Refinery

Former Minister of Communications, Adebayo Shittu, has called on the Federal Government, along with relevant ministries, departments, and agencies, to offer unwavering support to the $20 billion Dangote Refinery in Lagos.

Speaking on Channels Television’s Sunrise Daily show on Wednesday monitored by Mega Icon Magazine, Shittu emphasised that the success of this ambitious project, which is set to process 650,000 barrels of crude oil per day, is crucial for reducing Nigeria’s long-standing dependence on fuel subsidies.

Nigeria, Africa’s most populous nation, grapples with severe energy issues.

The country’s state-owned refineries are currently non-operational, and it relies heavily on imported refined petroleum products. The Nigerian National Petroleum Corporation (NNPC) remains the primary importer of these essential goods.

The situation has led to frequent fuel shortages, with petrol prices soaring from approximately N200 per litre to around N700 per litre since the subsidy removal in May 2023.

This surge has further exacerbated the struggles of Nigerian citizens, who rely on petrol to power their vehicles and generators amidst persistent electricity supply challenges.

Addressing questions about the possibility of reinstating the subsidy regime, the former minister acknowledged he didn’t have all the details but emphasised, “What I do know over the years is that we have been borrowing for subsidy.”

He explained, “It’s a very clear thing to understand. If you produce crude oil at say, N100 per litre because you don’t have refining facilities, you take it overseas. You pay in dollars to transport it overseas to refineries there. You pay in dollars to refine there. You pay in dollars to bring it back. Can the cost of that one litre of fuel remain N100 or even N200?”

Shittu continued, “So, unless we can refine locally. And that is why I am complimenting Dangote and I urge that everybody should give Dangote Refinery all the support so that, for once, we can stop exporting our crude oil for refining to bring it back because it would certainly add to the cost. And if we do not want to add to the cost, then we must subsidise. To subsidise, you have to take loans.”