Aliko Dangote, Chairman of Dangote Refinery and Petrochemicals, has projected that Nigeria could position itself as Africa’s refining hub, significantly reducing the continent’s reliance on imported petroleum products.
As reported by Channels TV, speaking through Engr. Mansur Ahmed, Group Executive Director of Dangote Industries Limited, at a summit organized by the Crude Oil Refinery Owners Association of Nigeria (CORAN) in Lagos, Dangote emphasized the importance of boosting Nigeria’s crude oil production and optimizing crude supply to local refineries.
Dangote stressed that by ensuring a steady supply of crude oil to refineries within the country, Nigeria could transition from being a net importer to a net exporter of refined petroleum products. “We must prioritize domestic crude supply obligations,” he said, highlighting the strategic opportunity for Nigeria to serve Africa’s demand for refined products.
Despite being a major oil producer, Africa imports around 3 million barrels of petroleum products daily, at an estimated cost of $17 billion in 2023, Dangote revealed. He noted that Nigeria, given its geographic location and refining capacity, could fill this gap and provide more competitively priced products to the continent.
“Both the crude oil and the petroleum products will travel shorter distances. The logistics costs of floating storage will be eliminated, and countries can purchase their petroleum product requirements just-in-time,” Dangote stated.
He pointed out that the Dangote Refinery is already making strides in this direction by producing sufficient quantities of diesel and jet fuel to meet domestic demand. “We recently started the production of PMS and will soon ramp up to meet Nigeria’s needs. Our refined products have been exported to diverse markets, including Europe, Brazil, the UK, the USA, Singapore, and South Korea,” he added.
To fully capitalize on this potential, Dangote recommended that Nigeria develop a refining capacity of 1.5 million barrels per day. He called on the government to offer incentives to investors in the refining sector. “It is unfortunate that while countries like Norway are putting oil proceeds into a future fund, in Africa, we are spending oil proceeds from the future,” he said, urging for more strategic use of oil revenues.
Dangote praised the efforts of President Bola Ahmed Tinubu’s administration in taking steps to boost crude production by fast-tracking international oil company (IOC) divestments and implementing other supportive measures.
Global shifts in petroleum trade, particularly in Europe, present an opportunity for Nigeria to assert itself as a key player in the global refining industry. “As a vibrant exporter of refined products, Nigeria will witness an improvement in its balance of trade and generate much-needed foreign currency. Nigeria’s potential as a refining hub is clearly not in doubt; let us work together to make it happen,” Dangote urged.
He also noted that the summit’s theme, “Making Nigeria a Net Exporter of Petroleum Products,” specifies the progress the country is making towards this goal.
Peoplesmind