Aliko Dangote has revealed that his company constructed its 650,000 barrels per day (bpd) refinery worth $20 billion without any support or incentives from the Nigerian government.
Dangote, Africa’s wealthiest individual and president of Dangote Industries Limited, also highlighted that Nigeria needs a local refining capacity of up to 1.5 million bpd to achieve energy self-sufficiency.
Speaking at the inaugural Crude Oil Refinery Owners Association of Nigeria (CORAN) Summit in Lagos, themed “Making Nigeria A Net Exporter of Petroleum Products,” Dangote emphasized that his company received no incentives from the federal government for its refinery project.
According to ThisDay, Dangote’s keynote address, delivered by the company’s group executive director, Mr. Mansur Ahmed, reiterated that the refinery now produces enough diesel and jet fuel to satisfy Nigeria’s domestic needs.
Dangote said:
It is worth noting that TimesNow.com.ng previously reported that the Nigerian National Petroleum Company Limited (NNPC) secured a loan from Lekki Refiner Funding Limited to acquire a 20% stake in the Dangote Refinery.
However, NNPC’s stake was later reduced to 7.2% after missing the deadline to pay the remaining balance of the agreed funding.
The Dangote refinery, valued at $20 billion and located in the Lekki Free Trade Zone, Lagos, is recognized as the seventh-largest refinery globally and the largest single-train refinery in the world.
Since January 2024, the refinery has been producing refined white products such as diesel, aviation fuel, naphtha, and more recently, petrol, positioning Nigeria to transition from a petroleum product import-reliant nation to a net exporter of refined products.
In related news, TimesNow.com.ng reported that the federal government had recommended that the NNPC invest in local refineries rather than operating government-owned ones.
Heineken Lokpobiri, the minister of state for petroleum resources (oil), stated that the federal government intends to encourage the national oil firm to acquire shares in the planned and existing private refineries.
He said the government would encourage NNPC Ltd to adopt a new model allowing private investors to run the refineries optimally.
Proofreading by James, Ojo Adakole, journalist and copy editor at TimesNow.com.ng.
Source: TimesNow.com.ng
