ASHENEWS reports that an international financial analytics firm, S&P Global has hailed the 650,000 barrels per day (bpd) Dangote Oil Refinery and Petrochemicals complex as a potential solution to Nigeria’s foreign exchange (forex) challenges and a catalyst for the nation’s economic development.
The company’s assessment came after an onsite visit to the Dangote Refinery in Ibeju-Lekki, Lagos, conducted as part of its sovereign credit ratings review of Nigeria, accompanied by officials from the Federal Ministry of Finance.
S&P Global, headquartered in Manhattan, New York City, noted that the largest single-train refinery complex in the world is poised to significantly strengthen Nigeria’s oil sector and, more broadly, its economy.
The Director and Lead Analyst of Sovereign and International Public Finance Ratings at S&P Global Ratings, Ravi Bhatia led the delegation and emphasized the transformative potential of the refinery.
“The Dangote refinery, with its capacity to process 650,000 barrels per day at full capacity, is the largest single-train refinery in the world. Nigeria, a major crude exporter, faces issues with importing refined fuels.
“Refining crude domestically will save foreign exchange and positively impact the economy in the medium term,” Bhatia said after an extensive tour of the facility.
The Vice President of Oil and Gas at Dangote Industries Limited (DIL), Devakumar Edwin echoed these sentiments during a media briefing.
He reiterated that the company aims to leverage Africa’s crude oil resources to produce refined products locally, thereby driving industrial development, job creation, and economic prosperity.
Edwin confirmed that the production of premium motor spirit (PMS) will begin this month (July).
“The refinery’s products are of high quality and meet international standards, capable of fulfilling 100 per cent of Nigeria’s demand for petrol, diesel, kerosene, and aviation jet fuel, with surpluses available for export,” Edwin stated.
The S&P team commended Aliko Dangote, President of Dangote Industries Limited, for integrating advanced technologies and stringent quality control measures, including a state-of-the-art Central Control Unit ensuring smooth automation of operations.
Currently, the refinery operates at a capacity of 350,000 barrels per day, with plans to increase to at least 500,000 barrels per day by July/August, starting the refining of petrol and ultra-low sulphur diesel.
The refinery is designed to process a wide range of crudes, including various African and Middle Eastern crudes, as well as US Light Oil, all conforming to Euro V specifications. It also complies with US EPA, EU emission norms, DPR emission/effluent norms, and ARDA standards.
Edwin highlighted the pride in the fact that a Nigerian company designed and built the world’s largest single-train refinery complex, acting directly as its Engineering, Procurement, and Construction (EPC) contractor.
The refinery also features a self-sufficient marine facility capable of handling the world’s largest vessels.
“The refinery produces top-quality Euro V grade products and is one of the most energy-efficient and environmentally friendly refineries globally. It is fully automated and entirely designed, engineered, and constructed by a Nigerian company as the EPC contractor,” he added.
Nigeria, despite being one of the world’s leading oil producers, exports all its crude oil for refining and imports refined products due to a lack of operational refineries.
The country imports at least 50 million litres of petrol per day to meet domestic demand. Data from the National Bureau of Statistics (NBS) revealed that Nigeria spent approximately N12 trillion on petroleum product imports in 2023, marking an 18.68% increase from the N10 trillion spent in 2022.
The successful operation of the Dangote Refinery is expected to reduce Nigeria’s dependency on imported refined products, stabilize the forex market, and bolster economic growth.
