By Yemi Olakitan
The Dangote Refinery, a monumental $20 billion project, is poised to become fully operational by the end of 2024, refining an impressive 650,000 barrels per day (bpd).
This refinery, spearheaded by Aliko Dangote, Africa’s wealthiest man with an estimated net worth of $10.5 billion, holds the promise of revolutionizing Nigeria’s economy, potentially saving billions in foreign exchange spent on fuel imports.
The initial shipment of approximately 6 million barrels for refining is expected to be ready by the end of the month, marking a significant milestone for the project.
Dangote, at 66 years old, envisions the refinery starting with 350,000 barrels a day and gradually reaching its full capacity by the end of 2024.
The Dangote Refinery, touted as the largest “single train” facility globally with a sole distillation unit, aims to address Nigeria’s historical challenge of insufficient petroleum refining capacity.
Aliko Dangote expressed his dismay, deeming it “shameful” that a major oil-producing nation like Nigeria has struggled to refine its oil for almost five decades.
Amaka Anku, head of the Africa practice at political risk consultant Eurasia Group, acknowledged the massive and intricate nature of the project, praising Dangote’s commitment to investing billions of his own money in long-term projects that benefit the nation.
Despite facing delays and going approximately $8 billion over budget, Dangote expressed relief at reaching the project’s completion, emphasizing the challenges and risks encountered along the way.
He noted the lack of understanding from competitors about managing the largest private sector employer and taxpayer in Nigeria.
While Aliko Dangote refrained from delving into specifics about disputes with the Nigerian National Petroleum Company Limited (NNPC) regarding crude supply, he affirmed that all supply-related issues had been resolved.
He dismissed claims of NNPC exerting pressure for a larger share of the business, stating that the refinery would eventually be listed as a distinct business, starting with the Lagos stock exchange.
Dangote, who anticipates the refinery generating $25 billion in annual income at full capacity, downplayed allegations of disagreements with the NNPC and emphasized the national significance of the project.
He revealed the extensive efforts, including creating a dedicated port and road, establishing a trucking company, and constructing an industrial welding facility, required to bring the project to fruition.
In conclusion, Aliko Dangote affirmed that the Dangote Refinery, a project of immense scale and significance, is ready for operation, marking a pivotal moment in Nigeria’s industrial landscape.