Introduction

2023 was in many respects a defining year for the Energy sector in Nigeria. The newly elected Bola Ahmed Tinubu-led government (Federal Government) wasted no time in declaring the era of petroleum subsidy in Nigeria over. The long-standing subsidy on the sale and distribution of Premium Motor Spirit (PMS) was officially removed as the financial cost of subsidy became unsustainable for the Federal Government.

On a positive note, the much-anticipated Dangote Refinery (the Refinery) located in Ibeju-Lekki was officially commissioned in May 2023. The Refinery is a 650,000 barrels per day (BPD) integrated refinery in the Lekki Free Zone. It is expected to be Africa’s biggest oil refinery and the world’s biggest single-train facility. The Refinery is expected to meet 100% of Nigeria’s domestic requirement for refined products and have a surplus of each of these products for export. The Refinery has since commenced production of diesel and aviation fuel as it prepares to start producing PMS.

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