Amidst a wave of accolades from prominent figures, including Nigerian President Muhammadu Buhari and five other African heads of state, Aliko Dangote, President of Dangote Industries Limited (DIL), revealed that the newly commissioned 650,000 barrels per day (bpd) refinery would create employment opportunities for over 100,000 Nigerian youths while generating over $21 billion in revenue.
The refinery’s operation would significantly reduce Nigeria’s reliance on fuel imports, thereby saving the country substantial foreign exchange reserves.
DIL, which currently boasts a workforce of over 33,000 employees, aims to replicate the success achieved in the cement and fertilizer industries.
Addressing the gathering, Dangote expressed his concern over the adverse effects of the current fuel crisis on the nation’s economy.
This concern served as the impetus behind his decision to construct a world-class refinery that would alter the trajectory of the fuel industry in Nigeria. Despite facing various challenges along the way, Dangote remained resolute in his commitment.
He highlighted the circumstances that led his company to embark on building its own refinery.
After failing to acquire any of the existing dormant refineries, Dangote shifted his marketing strategy and opted for an ambitious project, one that would surpass any other individual-led endeavor worldwide.
Dangote emphasized that the refinery would operate at maximum efficiency and effectiveness, benefiting all Nigerians.
He stated, “We will replicate what we achieved in cement and fertilizer by attaining self-sufficiency and becoming a net exporter.”
He further assured the nation that 40 per cent of the refinery’s production capacity would be available for export, providing essential raw materials for plastic and pharmaceutical industries.
President Buhari, in his remarks, congratulated the Dangote Group, stating, “The commissioning of this 650,000 bpd refinery will enable our country to achieve self-sufficiency in refined products and even have surplus for export.
The government and people of Nigeria are proud of the determination and resilience displayed by Dangote as an entrepreneur.”
He continued, “This achievement, at a crucial juncture in our nation’s economic development, marks a significant milestone for our economy and a game-changer for the downstream petroleum industry, not only in Nigeria but also across the entire African continent. Dangote Group has played a vital role in transforming our economy, shifting us from heavy import dependence to being a net exporter in critical industries such as cement and fertilizer.”
President Buhari acknowledged the strain on Nigeria’s economy due to decades of economic infrastructure deficits and years of insurgency, compounded by external crises like the global financial downturn, the collapse of oil prices, the COVID-19 pandemic, and the Russia-Ukraine conflict.
Recognizing the limitations of government in providing essential infrastructure without resorting to borrowing, he emphasized the need for a conducive environment for the private sector to thrive and bridge the substantial investment gap, particularly in infrastructure and critical sectors.
Governor of the Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, lauded Mr. Dangote for the successful completion of the refinery project. He stated that apart from meeting Nigeria’s domestic petrol needs, the refinery would generate significant export revenue for the country.
Emefiele reminisced, “When Alhaji Aliko Dangote announced his plans for the refinery in September 2013, it was projected to cost around US$9 billion, with the Dangote Group contributing $3 billion in equity investment, while the rest would be financed through commercial loans. However, due to various factors, the total project cost amounted to US$18.5 billion, with a 50 per cent equity investment and 50 per cent debt financing. Notably, domestic banks played a major role in providing commercial loans, with additional support from foreign banks. The Central Bank of Nigeria also collaborated with the Dangote Group, providing approximately N125 billion in domestic currency to meet the venture’s requirements.”
He further revealed that the Dangote Group had already begun repaying some of the commercial loans even before the commissioning of the facility, showcasing the financial capability of the group and its chairman.
Emefiele proudly stated, “Following extensive repayments, the outstanding debt has significantly dropped from over US$9 billion to US$3 billion.”
Mr. Mele Kolo Kyari, the Group Managing Director of the Nigerian National Petroleum Company Ltd (NNPC), expressed the NNPC’s delight in partnering with Dangote Refinery, as it would ensure a smooth supply of petroleum products and foster healthy competition for the nation’s economic benefit.
Kyari emphasized the commitment of NNPC Ltd. to add value to the project and highlighted the importance of the new Petroleum Industry Act in securing the supply of refined products and safeguarding the refinery’s operations.
He also acknowledged the refinery’s timely arrival, considering the government’s mounting burden of subsidies on imported products.
The Presidents of Ghana, Senegal, Niger, Benin Republic, and Chad also extended their best wishes, expressing satisfaction that the Dangote Refinery would serve the West African region and bring economic benefits to their respective countries.
They hailed the Dangote Refinery as an African company by an African entrepreneur, symbolizing the continent’s capacity for self-sufficiency and exportation.
