The Dangote refinery in Nigeria, Africa’s largest oil refinery, is set to be commissioned in two weeks’ time.
Nigeria’s President Muhammadu Buhari is set to commission, the Dangote Refinery, Africa’s largest oil refinery, in two weeks’ time, according to a statement released on Friday. The statement from the presidency said that Buhari will undertake the commissioning ceremony on May 22, 2023, marking a major milestone for the country’s oil industry.
The Dangote Refinery
The Dangote Refinery, located in Lagos, is expected to have a refining capacity of 650,000 barrels per day and is set to significantly reduce Nigeria’s reliance on imported petroleum products. It is also expected to boost the country’s economy and create thousands of jobs, both directly and indirectly.
The project, which has been under construction for several years, is being built by Aliko Dangote, Africa’s richest man and a prominent Nigerian industrialist. Dangote has invested billions of dollars in the refinery, which is set to become a major player in the global oil industry.
Producing critical products
“The refinery’s production of critical products like naphtha and polypropylene will stimulate the development of other industries, such as cosmetics, plastics, and textiles. Refineries on this scale could save Nigeria up to USD 10 billion in foreign exchange and generate approximately USD 10 billion from exports,” said Dangote.
“We see room for development of added value in agribusiness too. Here, initiatives like our Sugar Backward Integration Projects look to create a strong localized supply in the sugar industry. With a goal to produce around 0.5 million tons of sugar per annum from locally grown sugar cane, benefits will be created across the sugar value chain for local suppliers,” he added.
Domestic fuel shortages
Nigeria, one of the world’s largest oil producers, has struggled with domestic fuel shortages and high prices for many years, despite its abundant oil resources. The Dangote Refinery is expected to help address these challenges and could transform Nigeria into a net exporter of refined petroleum products.
The commissioning of the Dangote Refinery is seen as a significant achievement for Nigeria and a major step towards achieving self-sufficiency in the country’s oil sector. The project is also expected to have a ripple effect on the wider African continent, where many countries are grappling with similar challenges in the energy sector.
South Africa’s Eskom recently announced plans to create an energy storage system to address the country’s ongoing electricity shortages.
South Africa and Nigeria are two of the ‘Big Four’, the African states which attract the most investment into startups.