Despite being one of the largest oil producers in Africa and having the continent's largest economy, Nigeria heavily relies on imported gasoline and diesel due to the limited capacity of local refineries.
Nigeria has been exchanging significant quantities of its crude oil, worth billions of dollars, for gasoline, which it has subsidized for years to keep domestic prices low.
These fuel imports and subsidies have drained substantial foreign exchange reserves at a time when Nigeria faced declining oil revenues and a shortage of foreign currency.
After initially scheduled for opening in 2021, the new refinery was officially inaugurated by former President Muhammadu Buhari in 2023, with operations expected to commence in June.
Since taking office in May of the previous year, President Bola Ahmed Tinubu has phased out fuel subsidies and floated the local currency, the Naira, as part of economic reforms aimed at attracting foreign investment and fostering long-term growth.
Follow the latest news on Google News
