President Muhammadu Buhari will On January 24, officially commission the Dangote Oil Refinery which is situated in Lagos and owned by the Africa’s richest man Aliko Dangote.
The refinery has a daily processing capacity of 540,000 barrels of Nigerian crude oil. The project is a calculated attempt by both Dangote and the Nigerian government to develop the nation’s downstream sector and turn it into a net exporter of petrochemicals and refined petroleum products by 2026.
It is anticipated that the refinery will supply all Nigeria’s needs for refined products with a surplus for export, thereby opening up a market for about $11 billion in petroleum products from Nigeria per year. Additionally, the facility will produce 3 billion standard cubic feet of gas, 65 million litres of premium motor spirits (petrol), 15 million litres of diesel, and 4 million metric tonnes of jet fuel per year.
The Refinery is projected to be responsible for more than half of Africa’s future refining increases, according to the Organization of Petroleum Exporting Countries (OPEC).
Recall that the project was originally slated to be commissioned in April 2022, but was delayed due to the late arrival of refinery equipment, COVID 19 pandemic and disrupted supply lines.
A significant accomplishment for both Nigeria and the continent of Africa is the start of operations at the refinery which will not only provide desperately needed refined petroleum products for internal consumption but also potentially open up a sizable export market.