The World Bank has commended the Dangote Group for its foresight in investing in the 650,000-barrel-per-day refinery, stating that the facility has protected Nigeria from global energy shortages caused by the ongoing Middle East war.
World Bank President Ajay Banga told Reuters in an interview on Friday that Nigeria, which had long faced energy problems, is now benefiting from the $20 billion investment made by the Dangote Group.
“Nigeria should be breathing a sigh of relief. They’ve built up the ability to have energy security for themselves through that huge investment,” Banga said.
“It’s actually a really good example of the right thing being done in terms of energy self-sufficiency for them, but also for their neighbours.”
According to Banga, the refinery has increased output during the war and is now supplying aviation fuel to neighbouring countries.
The war in the Middle East has killed thousands and sent oil prices up by 50 percent while disrupting supplies of oil, gas, fertiliser, helium, and other goods, as well as tourism and air travel.
Banga warned that the war will have a cascading impact on the global economy, even if a ceasefire takes hold. Global growth could be lowered by 0.3 to 0.4 percentage points in a baseline scenario with an early end to the war, and by as much as 1 percentage point if it endures, he said.
Inflation could increase by 200 to 300 basis points, with a much higher impact if the war continues.
The World Bank’s baseline estimate now projects growth in emerging markets and developing economies of 3.65 percent in 2026, compared to 4 percent in October, dropping as low as 2.6 percent in an adverse scenario with a longer-lasting war.
Banga said the crisis has put a fresh spotlight on the need for countries to diversify energy supplies and boost self-sufficiency. The World Bank last June ended a longstanding ban on funding nuclear energy projects as part of a push to meet rising electricity needs.
