S&P Global has lauded the 650,000 barrels per day (bpd) Dangote Oil Refinery and Petrochemicals company for its potential to address Nigeria’s foreign exchange issues and strengthen the Naira while catalyzing economic growth. The international financial analytics corporation, based in Manhattan, New York City, highlighted this during a visit to the refinery in Ibeju-Lekki, Lagos, as part of its sovereign credit ratings assessment of Nigeria.
The Dangote Refinery, the world’s largest single-train refinery complex, is expected to bolster Nigeria’s oil sector and positively impact its economy. Ravi Bhatia, Director and Lead Analyst of Sovereign and International Public Finance Ratings at S&P Global, noted that the refinery could transform Nigeria into a net exporter of petroleum products, boosting revenue and easing pressure on foreign exchange reserves.
“It is a very impressive facility, able to process 650,000 barrels a day when at full capacity. Nigeria is a big exporter of crude but faces issues importing refined fuels. Refining crude locally can save money and foreign exchange, positively affecting the economy in the medium term,” The Nation quoted Bhatia saying after a four-hour tour of the facility.
Devakumar Edwin, Vice President of Oil and Gas at Dangote Industries Limited (DIL), emphasized that the refinery aims to harness Africa’s crude oil resources to produce refined products locally, spurring industrial development, job creation, and economic prosperity. Edwin announced that the refinery would start producing premium motor spirit (PMS) this month (July). The $20 billion facility is set to meet 100 percent of Nigeria’s demand for petrol, diesel, kerosene, and aviation fuel, with surpluses available for export.
The S&P team commended Aliko Dangote, President of Dangote Industries Limited, for integrating advanced technologies and quality control measures, including a state-of-the-art Central Control Unit ensuring smooth automation of operations. Currently operating at 350,000 bpd, the refinery plans to scale up to 500,000 bpd by July/August, refining petrol and ultra-low sulfur diesel.
The refinery is designed to process a wide range of crudes, including various African and Middle Eastern crudes, as well as US Light Oil, conforming to Euro V specifications and complying with US EPA, EU emission norms, DPR emission/effluent norms, and ARDA standards. Edwin highlighted the pride in a Nigerian company designing and building the world’s largest single-train refinery complex as its own Engineering, Procurement, and Construction (EPC) contractor. The refinery also incorporates a self-sufficient marine facility capable of handling the world’s largest vessels.
Nigeria, one of the world’s leading oil producers, exports all its crude oil for refining and imports refined products due to a lack of operational refineries. In 2023, Nigeria spent approximately N12 trillion on petroleum product imports, an 18.68% increase from the N10 trillion spent in 2022, according to the National Bureau of Statistics (NBS).
