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NESG: Dangote Refinery Will Create $21bn Market for Nigerian Crude Oil

Nigerian Economic Summit Group (NESG), one of Africa’s leading think-tanks, has projected that Dangote Refinery and Petrochemical Company, set for inauguration on May 22, can create a $21 billion market for Nigeria’s crude oil.

In a brief by the organisation, it further noted that the facility could meet all the fuel needs of Nigeria, including petrol, diesel, jet fuel, and polypropylene, as well as provide loading facilities that could accommodate about 2,900 tankers and spur the building of housing units capable of accommodating 33,000 people.

By constructing the 650,000 barrels per day crude oil facility, which sits atop 2,635 hectares of land and has 177 tank farms, NESG stated, Dangote refinery and petrochemical company is set to reshape Nigeria’s economy and position the country as a global energy player.

NESG said in the brief, “The sheer magnitude of the Dangote refinery and petrochemical company is awe-inspiring. Spanning an expansive 2,635 hectares, equivalent to seven times the size of Victoria Island, this world-class facility is a testament to Nigeria’s ambition and determination to take charge of its energy future.

 “With a capacity to process 650,000 barrels of crude oil per day, the refinery can cater to the entire spectrum of Nigeria’s refined product requirements. Additionally, the presence of a 900 KTPA polypropylene plant showcases its versatility in the production of petrochemical products.”

Stressing that Nigeria had long relied on imported refined petroleum products, resulting in economic vulnerability and dependence, NESG said the Dangote Refinery and Petrochemical Company aimed to change this paradigm.

The organisation stated, “With its extensive capacity, the refinery has the capability to meet 100 per cent of Nigeria’s domestic demand for all refined products. This includes 57 million litres per day of gasoline, 27 million litres per day of diesel, 11 million litres per day of kerosene, and nine million litres per day of aviation jet fuel.

“Furthermore, the surplus production of these products allows for potential exports, positioning Nigeria as a significant player in the global energy market.

“By producing refined products domestically, the Dangote Refinery and Petrochemical Company strengthens Nigeria’s energy independence and security.”

It added, “The integrated power plant within the refinery has a capacity of 435 MW, which exceeds the total power requirement of Ibadan Distribution Company (Disco).”

According to the group, this not only ensures a stable supply of petroleum products but also contributes to the economic development of multiple states in the region.

The reduced reliance on imports, the group argued, shields Nigeria from the effect of volatile global oil prices, further fortifying the country’s energy security.

NESG said the impact of the refinery and petrochemical company extended beyond its refining capabilities.

It stated, “The project encompasses the development of unparalleled infrastructure to support its operations. This includes a self-sufficient marine facility, featuring the world’s largest order of five Single Point Mooring systems (SPMs).

“Additionally, Dangote has established the world’s largest granite quarry, a ready-mix concrete capacity, and procured an extensive fleet of trucks and cranes to meet construction requirements. These endeavours not only enhance local capacity but also contribute to Nigeria’s broader infrastructure development goals.”

The group said in addition to the thousands of direct jobs created, the establishment of the Dangote Refinery and Petrochemical Company was expected to generate approximately 100,000 indirect employment opportunities, further contributing to Nigeria’s economic growth and job market.

It said, “The imminent launch of the Dangote Refinery and Petrochemical Company is poised to mark a new era in Nigeria’s energy sector. With its unparalleled scale, advanced technology, and commitment to self-sufficiency, this monumental project will elevate Nigeria’s economy and energy security to new heights.

“By meeting domestic demand and potentially exporting refined products, Nigeria will establish itself as a key player in the global energy market. The Dangote Refinery and Petrochemical Company stands as a testament to Nigeria’s ambition, innovation, and determination to shape its own energy future.”

Meanwhile, Lagos Chamber of Commerce and Industry (LCCI) commended the efforts of its “visioner”, Alhaji Aliko Dangote, and the “supportive” federal government for bringing about the project.

A statement by Director General of LCCI, Dr Chinyere Alumina, stressed, “LCCI views the refinery’s impact on the Nigerian economy as significant. It will save and generate foreign exchange. The refinery will create jobs, positively affect the value of the Naira, broaden prosperity for the downstream sector, and provide growth opportunities for businesses.

“It will also stimulate economic growth by impacting the country’s balance of payments.”

In addition, the chamber said it expected the refinery to fuel further growth and development across its value chain, including cosmetics, plastics, and textiles, among others.

Alumina stated, “We also see room for the development of added value in agribusiness, including the sugar backward integration projects that plan to create a strong localised supply in the sugar industry, benefiting local suppliers across the sugar value chain.

“Finally, the chamber notes that this initiative presents Nigeria as an attractive investment destination for local and foreign investors. Therefore, the LCCI urges the government to strengthen its commitment to creating an enabling environment for businesses.”

Similarly, President of Abuja Chamber of Commerce and Industry (ACCI), Mr Al-Mujtaba Abubakar, applauded Dangote for investing in the development of the largest refinery in Africa.

Abubakar, in a statement, said ACCI recognised the importance of this investment in creating new jobs, improving Nigeria’s economy, and boosting the country’s oil and gas industry. He pointed out that the investment is expected to attract foreign capital and significantly reduce Nigeria’s reliance on oil imports.

The ACCI boss commended Dangote’s vision and commitment to transforming the Nigerian economy, adding that this investment is a game-changer for the Nigerian oil and gas sector and a testament to Dangote’s determination to create sustainable value for Nigeria and Africa.

Abubakar stated that the chamber celebrated the outstanding achievement and encouraged other entrepreneurs to follow Dangote’s lead in investing in Nigeria.

In the same vein, Manufacturers Association of Nigeria (MAN), yesterday, felicitated the president and management of Dangote group on the completion and expected commissioning of the facility.

A statement by Director General of MAN, Segun Ajayi-Kadir, said, “It is gratifying to note that the refinery can meet 100 per cent of Nigeria’s requirement for all refined products (Gasoline, 57 million litres per day; Diesel, 27 million litres per day; Kerosene, 11 million litres per day and Aviation Jet, 9 million litres per day) and also have a surplus of each of these products for export.

“Therefore, the coming on-board of the Dangote refinery promises to bring to a pleasant end, the nightmare of long queues at petrol filling stations and the disruption of social and economic activities that come with it.

“The refinery, when fully operational, is expected to generate $10 billion from the export of refined petroleum products and save Nigeria an estimated $10 billion in foreign exchange.”

With state-of-the-art technology, the refinery, Ajayi-Kadir said, is designed to produce 100 per cent Nigerian crude, and have the flexibility to process other crudes from Africa, Middle East, and US Light Oil.

To cushion the potential effect of increase in mean sea level due to global warming, MAN said the company took appropriate measures using the world’s largest, second and 10th largest dredgers, to elevate the sea height by 1.5 metres.

It stated, “Dangote Group is one of the few companies in the world executing a petroleum refinery and a petrochemical complex directly as an Engineering, Procurement, and Construction (EPC) contractor. Globally, apart from three companies, no individual owner has done the complete EPC contract for a petroleum refinery.

“For all the determination and trail blazing zeal to bring this dream into reality, we congratulate the president/CEO of Dangote Group, Alhaji Aliko Dangote, GCON, on the occasion of the official commissioning of this pride-of-Africa birthed-in-Nigeria project.”

Emmanuel Addeh 

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