How Nigeria Could Save N35tn with Dangote Refinery and Petrochemicals

Nigeria is set to benefit from a massive boost in its economy and energy sector with the launch of the Dangote Refinery and Petrochemicals, the world’s largest single-train petroleum refiner.

The project, which was inaugurated by President Muhammadu Buhari on Monday, is expected to save the country about N35tn in fiscal expenditure within the next five years by reducing its dependence on imported petroleum products.

The refinery, which has a capacity of 650,000 barrels per day, will also produce fertiliser and petrochemicals that will enhance Nigeria’s industrial development and export potential.

The project will create thousands of direct and indirect jobs, generate up to 12,000MW of electricity, and support the government’s fiscal operations by easing the budget constraints of funding fuel subsidy.

The Central Bank of Nigeria Governor, Godwin Emefiele, said the project would also help Nigeria achieve self-sufficiency in refined petroleum products and stop the dumping of substandard products in the Nigerian market. He said the project would also earn Nigeria about $30bn in foreign exchange savings and an extra $10bn in foreign exchange inflow annually through the export of refined products.

The Founder/Chairman of Dangote Group, Aliko Dangote, said the refinery would start delivering refined products to the Nigerian market from July this year. He said the project was a testament to his commitment to transforming Nigeria’s economy from import-dependent to export-oriented.

The business tycoon took the podium and addressed the audience with pride. He stated that his project, in which he had invested $19 billion in, was not only Africa’s largest oil refinery but also the world’s largest single-train facility.

He added that the company will ensure that its plants are run at full throttle, with every machine humming and whirring in perfect sync, to enable the refinery to export its high-quality products to other markets at competitive prices.

“The operationalization of the refinery is a golden ticket for Nigeria given the African Union’s commitment to creating an African common market through the recently established African Continental Free Trade Area (AfCFTA).”

Dangote disclosed that the combined refinery and petrochemical complex will create a workforce of 9,500 direct employees and 25,000 indirect beneficiaries.

 He said the project was a testament to his commitment to transforming Nigeria’s economy from import-dependent to export-oriented. He cited how his cement and fertilizer plants had already made Nigeria a net exporter of these products and how he planned to do the same with petroleum products.

The inauguration ceremony was attended by several African leaders, including the President of Ghana, Nana Akufo-Addo; President of Niger Republic, Mohammed Bazoum; President of Chad, Mahamat Deby; President of Senegal, Macky Sall; and President of Togo, Faure Gnassingbé. They all commended Dangote for his visionary leadership and his contribution to Africa’s development.

The Lagos State Governor, Babajide Sanwo-Olu, also praised Buhari, the President-Elect, Bola Tinubu, and Dangote for their roles in making the project a reality.

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