The President and Chief Executive Officer of Dangote Group, Aliko Dangote, announced that the $20 billion Dangote Refinery in Lekki, Lagos, will commence operations by refining 350,000 barrels per day of crude oil.
In an interview with the Financial Times, Dangote revealed that the refinery is set to receive approximately six million barrels of crude in December 2023.
“We’re starting with 350,000 barrels a day,” stated Dangote. He further mentioned that a deal had been finalized for the “first cargo of about 6 million barrels” scheduled for delivery next month.
Dangote expressed confidence that the refinery could achieve its full capacity of 650,000 barrels a day by the end of 2024, despite skepticism from the International Monetary Fund, which doubts reaching more than a third of that capacity by 2025.
The Dangote Refinery, touted as the world’s largest “single train” facility with only one distillation unit, holds the potential to save Nigeria significant foreign exchange spent on importing fuel when operating at full capacity.
Dangote criticized the fact that Nigeria, a major oil producer for over 50 years, still relies heavily on imported fuel.
Dangote acknowledged the challenges faced during the massive project, which was delayed and exceeded the budget by about $8 billion.
Despite these challenges, he expressed gratitude, saying, “It’s either we sink or we sail through. And we thank the Almighty that at least we’ve arrived at the destination.”
However, Dangote faces intensified scrutiny during what should be a moment of triumph. A rival industrialist accused him of underhanded business practices and unfairly accessing foreign exchange.
Dangote denied both allegations. Additionally, the Nigerian National Petroleum Corporation has struggled to supply the required crude to the refinery, with Dangote asserting that the issue will be resolved in a matter of weeks.
In response to criticisms and doubts surrounding the refinery’s efficiency, Dangote defended the project, emphasizing that running such a business, the country’s largest private-sector employer and taxpayer, requires a profound understanding.
He rejected the idea of blaming NNPC for any issues, stating, “Let’s not have the blame game here. We have resolved all the issues of supply.”
Addressing rumors of a fallout with Bola Tinubu, the current president, Dangote did not delve into details but complained about how rivals perceived the government’s role in his success.
“Sometimes when people talk about us, it’s like the government is holding everybody down and allowing us alone to fly.”
Dangote dismissed suggestions that NNPC was attempting to secure a larger share of the refinery, stating, “I don’t think NNPC needs to buy more shares. I think they’re OK with what we’ve given them.” He revealed plans to eventually float the refinery as a separate company on the Lagos stock exchange.
