Obasanjo Backs Azikel's $1bn Bayelsa Refinery, Wants Completion in 12 Months

Former President Olusegun Obasanjo has commended Azikel Group President Azibapu Eruani for investing $1 billion in a private oil refinery in Bayelsa State. He urged the project's backers to complete the facility within 12 months.

Obasanjo spoke during a recent ceremony marking the symbolic installation of the refinery's Crude Distillation Unit (CDU) at the Azikel Refinery site in Obunagha community, Yenagoa Local Government Area. He said the progress made at the facility demonstrated Eruani's commitment to the project.

Obasanjo Returns Eight Years Later

He noted that he first visited the site eight years ago to lay the foundation stone and expressed satisfaction with the transformation since then. He also acknowledged the financial support provided by the African Export-Import Bank (Afreximbank) and the Africa Finance Corporation (AFC), urging both institutions to maintain their commitment until the refinery becomes operational.

He said: "I want also to thank those two financial institutions, African Finance Corporation and AfreximBank. My challenge to you, Dr Eruani, is to ensure that the refinery is completed within the next 12 months. With this done, you can even double the capacity."

Refinery Targets 2.5m Litres Petrol, 2m Litres Diesel Daily

Once operational, the refinery is expected to produce 2.5 million litres of Premium Motor Spirit (petrol) and 2 million litres of Automotive Gas Oil (diesel) daily. That would make it a significant addition to Nigeria's domestic refining capacity.

The project comes as Nigeria seeks to expand local petroleum processing and reduce its reliance on imported refined products, following the entry of the Dangote Petroleum Refinery into the market.

Eruani said the project was conceived to transform the Niger Delta from a region primarily associated with crude oil exports into a hub for petroleum refining and industrial production. He thanked Obasanjo for returning to the site eight years after the foundation-laying ceremony and acknowledged the contributions of the Bayelsa State Government, financial partners, technical experts and contractors.

Eruani also commended President Bola Tinubu for supporting efforts to strengthen Nigeria's energy security.

Diri Points to Jobs and Local Processing

Bayelsa State Governor Douye Diri described the refinery as a major industrial development for the state, the Niger Delta and Nigeria's South-South region. Diri said the project could help the region move beyond crude oil extraction by encouraging local processing and adding value to petroleum resources.

He also highlighted its potential to create jobs and support technical skills development. He urged young people in Bayelsa to prepare for employment and business opportunities that could emerge when the refinery begins commercial operations.

In a related development, Dangote Group is preparing to break ground on another multibillion-dollar refinery. The groundbreaking ceremony for its planned East Africa Oil Refinery in Lamu, Kenya, is scheduled for September 30, 2026.

The ambitious project, backed by Aliko Dangote, is designed to process up to 700,000 barrels of crude oil per day, potentially making it one of Africa's largest refineries when completed. Once operational, the facility is expected to serve Kenya and other markets across East and Central Africa, reducing the region's dependence on imported refined petroleum products.

For Nigeria, the Azikel project would add to domestic refining capacity if delivered on schedule. That could ease the import bill for petrol and diesel, reduce exposure to imported supply shocks, and support local industrial activity. The naira benefit, however, depends on actual commercial operations, not just construction milestones.