Aliko Dangote, the famed richest man in African continent, fulfills a dream of becoming the biggest player in Africa’s oil and gas sector following the recent commissioning of the Dangote Petroleum Refinery constructed by the Nigerian Billionaire
By Augustine Ojeikhoa
On Monday, May 22, 2023, the inauguration of the Dangote Refinery by President Muhammadu Buhari and five other presidents of African extraction became a “game changer” in the Nigeria’s oil and gas sector. The refinery which will commence commercial supply of refined crude oil products by July 2022 is expected to endow Nigeria with sufficiency in the premium motor spirit (petrol) in the coming years, as well as save the country billions of dollars that would have gone into oil importation.
Remarkably, the refinery is also expected to employ over 100,000 workers from the Nigerian youths who are unemployed, and generate over $21 billion revenue. It has the capacity to refine 650,000 barrels per day (bpd) of petrol to service local demands and for export purposes.
Located in Ibeju-Lekki area of Lagos State, Dangote Petroleum Refinery covers a land mass of approximately 2,635 hectares which is said to be seven times the size of Victoria Island city in the South west state.
According to reports, the world’s largest single-train 650,000 bpd petrol refining capacity, also boasts of 900,000 tonnes polypropylene plant and a 435 MW power plant that has the capacity to equal that of Ibadan Distribution Company (Disco) which covers Oyo, Ogun, Osun, Kwara and Ekiti States. Aside these features, the Dangote Petroleum Refinery boasts of numerous other facilities that have set it apart from its competitors around the globe.
Speaking at the inauguration ceremony which was performed by Buhari, promoter of the refinery, Dangote who disclosed that its products will hit the market at the end of July 2023, also said that the refinery can meet 100 per cent of Nigeria’s requirement of all refined products, including gasoline, diesel, kerosene and aviation fuel, the Jet Al. These products and the PMS, according to Dangote, will also be refined in surplus quantity for export to the international markets.
Dangote also said, “Beyond today’s ceremony, our first goal is to ramp up production of the various products to ensure that within this year, we’re able to fully satisfy our nations’ demand for higher quality products.
“Beyond this, we intend to ensure that our plants are run at the highest capacity of utilization and the highest efficiency to enable us export competitively in the Economic Community of West African States (ECOWAS) and wider regions in which 53 countries of 55 are dependent on imports to meet their petroleum products demands.
Speaking at the occasion attended by Heads of State from Ghana, Togo, Niger, Senegal and a representative of the President of Chad, out gone President Muhammadu Buhari described the feat as a significant milestone for Nigeria’s economy and a game changer for the downstream petroleum products market in the entire African region.
‘‘This mega industry we are commissioning today is a clear example of what can be achieved when entrepreneurs are encouraged and supported and when an enabling environment is created for investments and for businesses to thrive.
‘‘I am confident that my successor, His Excellency Asiwaju Bola Ahmed Tinubu, will sustain the improvement in our economic and business environment and strengthen the framework of our public-private partnership policies to accelerate the pace of our economic growth and development.
‘‘I am happy to leave our economy in very competent hands,’’ Buhari said.
The ex-president also said, ‘‘I urge and encourage our other great entrepreneurs to emulate this iconic Nigerian industrialist and join the government in accelerating our growth in order to realize our country’s globally recognized economic potential.
‘‘When I traveled around Africa and meet and engage my brother Heads of State, and I am delighted some of their Excellencies are here, I often sense a quiet expectation that our country is blessed with resources and human capacity to lead Africa’s rise to economic prosperity and the attainment of Agenda 2063 – ‘The Africa we all want.’
‘‘But to achieve the goals of Agenda 2063, Africa must come together – we must integrate our economies, eliminate barriers to trade and energize our youthful population to scale up our productive capacity.
‘‘We must create necessary conditions for our private sector to grow and partner with the public sector to accelerate economic growth across the continent”.
Giving their goodwill messages, Presidents of Ghana, Senegal, Niger, Benin Republic and Chad expressed satisfaction that the Dangote Refinery would serve the West African region.
Speaking at the commisioning, governor of the Central Bank of Nigeria, CBN, Godwin Emefiele, said the take-off of the Dangote Refinery and Petro-Chemical factories came with numerous economic benefits to Nigeria.
According to Emefiele, “We have it on good authority that the Dangote Group has paid down some portion of the commercial loans, even before the commissioning of this facility. As at today, total outstanding stands at $2.7billion.
“This reflects the astute credit-worthiness and commercial capability of the Group and its Chairman, Alhaji Aliko Dangote”.
