The President/Chief Executive Officer, Dangote Group, Aliko Dangote, has shared updates on the $20bn Dangote refinery in Lekki, Lagos. He mentioned that the refinery would commence operations by refining 350,000 barrels per day of crude oil. In an interview with the Financial Times, Dangote revealed that the refinery is set to receive approximately six million barrels of crude in December 2023.
“We’re starting with 350,000 barrels a day,” Dangote stated, highlighting that a deal has been secured for the “first cargo of about 6 million barrels” scheduled for delivery next month.
Dangote expressed optimism that the refinery could achieve its full capacity of 650,000 barrels a day by the end of 2024. However, the International Monetary Fund (IMF) has cast doubts, suggesting it might not reach more than a third of that by 2025.
Once operating at full capacity, the refinery, considered the world’s largest “single train” facility with just one distillation unit, is expected to significantly reduce Nigeria’s expenditure on imported fuel. Dangote expressed disappointment that, despite being a major oil producer for over 50 years, Nigeria has struggled to refine its own crude in sufficient quantity.
Acknowledging the challenges and delays faced during the project, Dangote emphasized that the refinery’s completion marks a significant achievement. Nevertheless, he faces external pressures, including accusations of unfair business practices and gaining undue access to foreign exchange.
Dangote also addressed concerns about the Nigerian National Petroleum Corporation’s (NNPC) challenges in supplying the required crude to the refinery, indicating that the issues have been resolved. NNPC owns a 20% stake in the refinery after a $2.76bn equity purchase in 2021.
Dangote rejected suggestions of NNPC seeking a larger share in the refinery and mentioned plans to eventually float the refinery as a separate company on the Lagos stock exchange.