Inspenet, May 24, 2023
The outgoing President of Nigeria, Muhammadu Buhari, inaugurated the Dangote refinery, with a capacity to produce 650,000 barrels per day, in the Lekki free zone, the commercial center of Lagos, in an act attended by some West African heads of state.
Valued at 20 billion dollars, the gigantic refinery built by the Dangote Group, owned by the richest man in Africa, Aliko Dangote, aims to produce up to 53 million liters of gasoline per day, as well as 4 million liters of diesel ( diesel) and 2 million liters of jet fuel per day.
Also, it will produce polypropylene, jet fuel and kerosene. The facility was also designed to process a wide variety of crudes, including many African crudes, some Middle Eastern crudes, and US (United States) light tight oil.
Speaking at the event, Dangote described the refinery as “the largest single train refinery in the world.”
The refinery is expected to solve some of Nigeria’s oil problems. Despite being an oil nation and one of the largest oil producers in Africa, Nigeria lacks the capacity to refine its oil.
Nigeria will double its refining capacity with the Dangote refinery
The Dangote refinery will double the refining capacity of the country, and will increase the demand for fuel at the national level and generate foreign currency for the country through exports.
“There will be constant availability of high-quality fuels for our transportation sector, the refinery will also make vital raw materials available to our industries for a wide range of manufacturing,” said Dangote, who partly financed the refinery’s construction.
About 50% of the funds used to build the refinery come from Dangote’s investment in equity, while the other half comes from debt financing from banks such as Access and Zenith.
“We have built a refinery with the capacity to process 650,000 barrels per day in a single train, the largest (of this type) in the world… We have opted for a plant designed with the latest technologies and a capacity that will change the rules of the game in Africa and in the world market,” added Dangote.
“Our first objective is to increase the production of the various products to ensure that this year we can fully meet the national demand for quality products,” said Dangote.
And he added: “Once our plant is fully operational, we hope that at least 40% of the capacity will be available for export and this will translate into a significant inflow of foreign currency into the country.
The Lekki free zone becomes an economic epicenter with the inauguration of the Dangote refinery
The refinery is located within the Lekki Free Trade Zone, a 16,500-hectare free trade area whose master plan also includes an airport project, a community of start-ups, and commercial and residential areas.
The size of the refinery is seven times the size of the Victoria Island of Lagos, and it sits on more than 2,000 hectares of land.
This is one of the last important projects to be inaugurated by Buhari, in power since 2015 and who will leave office next Monday after serving two terms.
The outgoing president will pass the baton to the official Bola Tinubu, who won the disputed presidential elections last February.
“I am happy to leave our economy in very capable hands,” Buhari said in a statement posted by the Nigerian government on Twitter.
Photos : Twitter @NigeriaGov
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