Obasanjo Reacts As Another Nigerian Billionaire Builds New Refinery in Nigeria
- Former President Olusegun Obasanjo praised Azikel Group President Azibapu Eruanit
- The Azikel Refinery in Bayelsa State is backed by Afreximbank and the African Finance Corporation
- Bayelsa Governor Douye Diri said the $1 billion investment could shift the Niger Delta from crude oil extraction towards local processing
PAY ATTENTION: Find it fast with our new search feature at Legit.ng!
Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism and deep knowledge of the Nigerian economy, stocks, and market trends.
Former President Olusegun Obasanjo has commended Azikel Group President Azibapu Eruani for investing $1 billion in a private oil refinery in Bayelsa State, urging 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.
Source: Getty Images
The former president said the progress made at the facility demonstrated Eruani's commitment to the project.
He noted that he first visited the site eight years ago to lay the foundation stone and expressed satisfaction with the transformation since then.
BusinessDay reports that Obasanjo 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."
Azikel Refinery targets millions of litres 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, making 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, The Guardian reports.
Eruani also commended President Bola Tinubu for supporting efforts to strengthen Nigeria's energy security.
Source: Getty Images
Bayelsa governor backs the investment
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, urging young people in Bayelsa to prepare for employment and business opportunities that could emerge when the refinery begins commercial operations.
Dangote targets East African fuel market
In a related development, Legit.ng reported that Dangote Group is preparing to break ground on another multibillion-dollar refinery, with the groundbreaking ceremony for its planned East Africa Oil Refinery in Lamu, Kenya, scheduled for September 30, 2026.
The ambitious project, backed by Nigerian billionaire 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.
Source: Legit.ng
Dave Ibemere (Senior Business Editor) Dave Ibemere is a senior business editor at Legit.ng. He is a financial journalist with over a decade of experience in print and online media. He also holds a Master's degree from the University of Lagos. Fellow, MTN Pan African Media Innovation(2026), Member of the Nigerian Institute of Public Relations and other media think tank groups. He previously worked with The Guardian, BusinessDay, and headed the business desk at Ripples Nigeria. Email: dave.ibemere@corp.legit.ng.
Victor Enengedi (Business HOD) Victor Enengedi is a trained journalist with over a decade of experience in both print and online media platforms. He holds a degree in History and Diplomatic Studies from Olabisi Onabanjo University, Ogun State. An AFP-certified journalist, he functions as the Head of the Business Desk at Legit. He has also worked as Head of Editorial Operations at Nairametrics. He can be reached via victor.enengedi@corp.legit.ng and +2348063274521.
