Nigeria-Africa’s richest man Aliko Dangote is set to start operations at his $20 billion oil refinery in December. The plant has a daily capacity of 650,000 barrels but will start with 350,000 barrels per day.
In an interview, the Chairman and CEO of Dangote Group said, “You will not see this kind of project in Nigeria in the next 20 years. We didn’t cut costs. We didn’t cut corners. We didn’t do it for people to clap for us. We did it for posterity.”
Nigeria is a major oil producer, being a member of OPEC (Organization of the Petroleum Exporting Countries), but her citizens have been struggling with fuel shortages and a high cost of living for years.
Kenyan Wallstreet reports that Dangote was confident of reaching the refinery’s full capacity by the end of 2024, but the IMF remains skeptical about achieving more than a third of that by 2025.
The facility is aimed at reducing Nigeria’s foreign exchange spending on imported fuel.
The Nigerian National Petroleum Company Limited (NNPCL) will supply up to six crude oil cargoes for the initial phase at the refinery.
The initial cost estimate for putting up the facility was $12-14 billion, and it was commissioned in May 2023.
It lies on 2,500 hectares of land outside Lagos and needed its own port, road, and infrastructure, requirements that have been met.
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