Africa’s richest man, Aliko Dangote, has revealed that Dangote Industries built its 650,000 barrels per day (bpd) refinery, valued at $20 billion, without any incentives from the Nigerian government. He emphasized that to make Nigeria an energy-sufficient nation, the country would require up to 1.5 million bpd in local refining capacity.
Speaking at the inaugural CORAN Summit in Lagos, Dangote, through his representative, Group Executive Director Mr. Mansur Ahmed, explained that despite the Dangote refinery producing sufficient diesel and jet fuel to meet domestic demand, Nigeria still faces challenges in becoming a net exporter of refined petroleum products. He noted that while the company recently began producing Premium Motor Spirit (PMS), commonly known as petrol, the country needs more capacity to achieve full self-sufficiency.
The summit also highlighted the supply issues facing domestic refineries, as Mr. Momoh Oyarekhua, Chairman of OPAC Refineries and CORAN, lamented inconsistent crude feedstock availability. Although the government had directed crude to be made available to local refineries in naira, this directive has not fully resolved the supply challenges. Oyarekhua pointed out that Nigeria’s combined installed refining capacity should be sufficient for self-sufficiency, but operational issues persist due to factors like pipeline vandalization and regulatory uncertainty.
On a related note, Nigeria’s Minister of Aviation, Festus Keyamo, disclosed that Dangote Refinery had been approved as the exclusive supplier of jet fuel (Jet A1) for airlines in the country, with purchases made entirely in naira, aiming to stabilize fuel prices for the aviation sector.
Dangote remains optimistic that with government support, Nigeria can replicate its success in cement production and become a key player in the global petroleum refining industry.
