‘Dangote Refinery can save Nigeria $10bn, generate extra $10bn’

Owner of the Dangote Refinery, Alhaji Aliko Dangote, has said the 650,000 barrels per day inte- grated refinery in Lagos has the prospect of saving $10 billion in foreign exchange (FX) for Nigeria. The refinery is scheduled to be inaugurated by President Muhammadu Buhari on May 22, 2023, He added that it could also generate an- other $10 billion in exports when it begins operation. Dangote spoke in an interview with a special edition of London-based publication, The Economists Magazine, titled ‘The World Ahead 2023.’ He said Nigeria currently imported over 90 per cent of its refined petroleum products, which amounted to roughly $10 billion in imports in 2022.

The Africa’s richest man stated that more prosperity could be created by locally refining Nigeria’s resources. According to him, the refinery would be a major step in reducing the country’s de- pendence on imported refined petroleum products through direct refining. He stated that his refinery would enable Nigeria to achieve self-sufficiency in refined petroleum products and export to other African markets. Dangote said: “The refinery’s comple- tion will not only create direct and indirect jobs but also lead to skills transfer and technology acquisition opportunities that will benefit the downstream sector.

“Moreover, 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 $10 billion in foreign exchange and generate approximately $10 billion from exports. “We see room for development of added value in agribusiness too. Here, initiatives like our Sugar Backward Integration Proj- ects look to create a strong localised sup- ply in the sugar industry. With a goal to produce around 0.5 million tons of sugar annually from locally grown sugar cane, benefits will be created across the sugar value chain for local suppliers.”

He added: “Its (Nigeria) population of over 200 million — of which 40 per cent is under the age of 15 – means the country’s demographic dividend offers investors with a long-term view an encouraging op- tion in several sectors. “Nigeria has a variety of untapped natu- ral resources which, for commodity-driven investors, offers options in the upstream, midstream, and downstream segments. Its vast arable land and favourable climatic conditions similarly support a wide range of crops, positioning it as an auspicious destination for agriculture-based invest- ments.