Business
How Dangote’s Full Refinery Capacity Could Push Naira Below ₦1,000 — Otedola
Billionaire businessman and investor, Femi Otedola, has explained how the Dangote Petroleum Refinery’s attainment of its full production capacity could significantly strengthen the Nigerian naira, projecting that the currency may trade below ₦1,000 to the United States dollar before the end of 2026.
Otedola made the assertion on Thursday in a post shared on X while congratulating Aliko Dangote on the refinery’s milestone of reaching 650,000 barrels per day capacity.
According to him, the refinery’s ability to meet a substantial portion of Nigeria’s domestic fuel demand marks a turning point for the country’s economy.
ALSO READ: Dangote Refinery Backs Gantry Loading, Cautions Against Costly Coastal Evacuation
He noted that the facility can supply up to 75 million litres of Premium Motor Spirit daily, drastically reducing Nigeria’s reliance on imported petroleum products.
How It Could Strengthen the Naira
Otedola explained that for decades, Nigeria depended heavily on fuel imports, placing immense pressure on the foreign exchange market as billions of dollars were spent annually to meet domestic energy needs.
With local refining now fully operational, the demand for foreign exchange to import refined petroleum products is expected to drop significantly.
This, he said, would ease pressure on the dollar, conserve foreign reserves, and help stabilise the exchange rate.
“With domestic refining now firmly underway after decades of reliance on imports, pressure on the foreign exchange market should ease significantly,” Otedola stated.
“I am optimistic that the naira will strengthen meaningfully, and trading below ₦1,000/$1 before year-end is increasingly within reach.”
Why the Projection Matters
The naira has already shown signs of recovery in recent weeks. At the official market, it traded around ₦1,354 to the dollar on Thursday, while the parallel market rate hovered between ₦1,430 and ₦1,440 — its strongest performance in over two years, according to market sources.
Economic analysts say sustained domestic refining could reduce import dependency, improve Nigeria’s trade balance, and boost investor confidence — all of which are key factors in currency stability.
Beyond the current 650,000 barrels per day capacity, Otedola revealed that Dangote Group has commenced work on a $12 billion expansion project aimed at increasing refining capacity to 1.4 million barrels per day.
The expansion will also include production of 2.4 million tonnes of polypropylene and 400,000 metric tonnes of linear alkyl benzene, a key raw material in detergent manufacturing.
The development comes amid ongoing efforts by the Central Bank of Nigeria to stabilise the foreign exchange market through liquidity-enhancing measures and policies designed to narrow the gap between official and parallel market rates.
If sustained, stakeholders believe the refinery’s full capacity could mark a major step toward long-term forex stability and economic transformation in Nigeria.
Business
Adoption of AI Feature as NIPetGE Pays Courtesy Call at NNPC Ltd
Enhanced adoption of artificial intelligence and other digital technologies to improve operations in Nigeria’s oil and gas industry is taking the centre stage in relevant circles.
The issue came up strongly when the President-elect of the Nigerian Institute of Petroleum and Gas Engineers NIPetGE, Prisca Kanebi, paid a courtesy call at the Nigerian National Petroleum Company Limited (NNPC Ltd), Abuja.
Biztellers reports that the Kanebi led delegation was received by the Group Chief Executive Officer of the NNPC Ltd, Bayo Ojulari, represented by the Executive Vice President, Gas, Power and New Energy, Olalekan Ogunleye.
According to a statement made available on Sunday, discussions at the meeting focused on the future of Nigeria’s hydrocarbon industry amid global energy transition concerns, technological changes and sustainability targets.
ALSO READ: NNPC Ltd, IOCs Raise Crude Supply to Local Refineries by 103% in 4 Months
The statement indicated that the NNPC Ltd acknowledged the role of NIPetGE in policy advocacy, technical development and innovation within the sector.
Speaking during the meeting, Kanebi highlighted recommendations from the institute’s recent conference, including the proposed establishment of a national centre for intelligent energy systems to support the deployment of artificial intelligence, the Internet of Things and robotics across the petroleum value chain.
She also commended the Federal Government’s decarbonisation efforts and reiterated the institute’s support for policies aimed at improving sustainability in the industry.
The institute also recommended the creation of a hydrocarbon-linked emissions trading system to allow Nigeria to take part in global carbon markets.
The institute also proposed fiscal incentives to support local manufacturing and service delivery in the oil and gas sector, as well as the expansion of the Energy Transition Plan to include measurable upstream decarbonisation targets backed by tax credits.
Other proposals included increased public-private partnerships in emission control infrastructure, carbon capture projects and hybrid renewable energy initiatives.
Both organisations also stressed the need for stronger collaboration between industry and academic institutions to improve professional capacity and align petroleum engineering practice in Nigeria with international standards.
The institute further disclosed that its bill seeking chartered status had passed second reading and was progressing towards a third hearing at the National Assembly.
It added that NNPC Ltd pledged support for future collaborations with the institute on initiatives aimed at improving efficiency and innovation in the energy sector.
Business
FHC Orders NUPRC to Comply with PIA
Business
Local Firms Lead Revival of Idle Oil Wells – SPE
Nigeria’s indigenous oil and gas companies are reopening dormant wells and ramping up production from assets acquired from international oil companies (IOCs) to boost crude oil output.
The Society of Petroleum Engineers (SPE), Nigeria Council, made the assertion through its Chairman, Francis Nwaochie, on the sideline of the Offshore Technology Conference (OTC) which ended at the weekend in Houston, Texas.
Nwaochie said indigenous operators were already taking advantage of opportunities created by disruptions in the global energy market to increase production from existing assets.
According to him, local firms that recently acquired onshore and shallow water assets from IOCs were aggressively reviving inactive wells and maximizing available infrastructure to raise output levels.
“What we are seeing now is that indigenous companies are reopening wells from the assets they acquired from the IOCs. Some of them have almost doubled production from those existing assets,”.
He explained that the renewed focus on dormant wells and existing facilities had become critical at a time the global oil market was facing supply shortages triggered by geopolitical tensions in the Middle East.
The SPE Nigeria Council Chairman noted that Africa, particularly Nigeria, was well positioned to benefit from the supply gap because of the continent’s relative stability compared to some other oil-producing regions.
“There is a huge opportunity for Africa right now. The focus is gradually shifting to Africa because of the volatile environment in many other producing regions.”
He stated that indigenous operators were leveraging digital technologies, financing opportunities and local expertise to improve production efficiency and optimise existing fields.
He added that stronger implementation of local content policies was also helping to create a more stable operating environment for oil and gas investments.
“Local content is very critical. Once communities and local companies clearly understand their roles and benefits, then you create peace across the industry. Business only thrives in peaceful environments.”
ALSO READ: Nigerian Navy Recovers Large Cache of Illegal Refined Petroleum Products
Nwaochie also stressed the need for Nigeria to move beyond crude oil production and begin developing indigenous technologies for the energy industry.
According to him, SPE Nigeria Council was actively supporting innovation and technology development among young Nigerian engineers and researchers.
He disclosed that the association was engaging the National Universities Commission(NUC) on reforms to engineering curricula in universities to better prepare graduates for the future of the energy industry.
“One of our major focuses in SPE is technology development. We should not only import machines and equipment, we must begin to develop our own technologies locally.”
Nwaochie revealed that SPE was already supporting local innovators working on technologies such as remotely operated underwater vehicles (ROVs), noting that indigenous technology development will strengthen Nigeria’s economy and deepen local participation in the oil and gas sector.
“We may not get everything right immediately but we must start somewhere. That is how countries that dominate the global energy industry built their capacities.”





