Aliko Dangote, Chairman of the Dangote Refinery and Petrochemical Company Limited, has emphasized the need for Nigeria to boost its crude oil production capacity and effectively manage crude supply to ensure sufficient feedstock for domestic refineries. This strategy is crucial for transitioning from a net importer to a net exporter of petroleum products.
Dangote made these remarks during a keynote address at the Crude Oil Refinery Owners Association of Nigeria (CORAN) summit held in Lagos, attended by top government officials and key stakeholders from the midstream and downstream sectors.
Highlighting Nigeria’s potential as a refining hub, Dangote expressed concern that, despite the country producing over 3.4 million barrels of crude oil daily, Africa imports approximately 3 million barrels of petroleum products each day. He noted that these imports, primarily from Europe, Russia, and other regions, are estimated to cost around $17 billion in 2023.
“Nigeria can capitalize on this situation to become a net exporter of refined petroleum products, as the markets can be more competitively served by our country,” he stated. He emphasized that both crude oil and petroleum products would travel shorter distances, eliminating logistics costs associated with floating storage. This would allow countries to purchase their petroleum requirements just in time.
“Nigeria and Africa can achieve complete self-sufficiency, keeping all value on our shores. We have done it in the cement industry, and we can certainly replicate this success in petroleum products,” he added.
Dangote highlighted that the Dangote Refinery already produces enough diesel and jet fuel to meet Nigeria’s demands and has recently begun producing Premium Motor Spirit (PMS), with plans to ramp up production to satisfy the nation’s needs. He also mentioned that their refined products have been successfully exported to various markets, including Europe, Brazil, the UK, the USA, Singapore, and South Korea.
Represented by Engr. Mansur Ahmed, Group Executive Director of Dangote Industries Ltd, Dangote urged the government to prioritize domestic crude supply obligations and develop a refining capacity of 1.5 million barrels per day to seize the opportunity for growth. He acknowledged both present and future challenges, calling for the government to incentivize investors, contrasting this with the Dangote Oil Refinery, which was built without any government incentives.