The President of the Dangote Group, Aliko Dangote stated on Tuesday that the Dangote Refinery was constructed without receiving any incentives from the Nigerian government. This announcement was made during his keynote address at the Crude Oil Refinery Owners Association of Nigeria (CORAN) Summit in Lagos, themed “Making Nigeria a Net Exporter of Petroleum Products.”
Represented by Mr. Ahmed Mansur of the Dangote Group, Dangote emphasized the need for more investor incentives to achieve Nigeria’s vision of becoming a refining hub. He stressed the importance of ensuring a consistent crude oil supply and urged the government to end the practice of mortgaging the country’s crude resources.
“It’s unfortunate that while countries like Norway are investing oil revenues into future funds, Africa is spending its future earnings,” Dangote remarked. He also advocated for prioritizing domestic crude supply obligations and expanding crude production to support the needs of the growing refining industry.
Dangote praised President Bola Ahmed Tinubu’s administration for accelerating initiatives such as International Oil Company (IOC) divestments, which are crucial for advancing the nation’s oil sector.
Despite being Africa’s largest crude oil producer, Nigeria has long depended on imports to meet its refined petroleum product needs. However, Dangote said that the country is on the verge of transitioning from a “net importer” to a “net exporter” of refined products, positioning itself as a significant player in the global downstream market.
“This transformation is a testament to our progress as an industry and as a nation. We owe a debt of gratitude to President Tinubu for his unwavering support on this journey,” Dangote said.
He highlighted Africa’s opportunities, noting that the continent imports about three million barrels of petroleum products daily, with much of this coming from European, Russian, and other international markets. Dangote pointed out that Nigeria, with its new refining capacity, is well-positioned to reduce these import costs and provide petroleum products to African nations more efficiently.
In 2023 alone, Africa’s petroleum trade was valued at approximately $17 billion, with Nigeria poised to reduce reliance on external sources. Dangote further noted that the Dangote Refinery is already producing sufficient diesel and jet fuel to meet Nigeria’s domestic needs and is scaling up the production of Premium Motor Spirit (PMS) to meet local demand.
In addition to meeting local needs, the refinery has begun exporting products to markets in Europe, Brazil, the UK, the USA, Singapore, and South Korea. Dangote predicted that global changes in the petroleum industry, particularly in Europe, will open new opportunities for Nigeria to disrupt traditional trade flows and solidify its position as a global player.
“Nigeria is uniquely positioned to take advantage of these opportunities and become a formidable force in the global oil industry. As an exporter of refined products, the country stands to improve its trade balance and generate much-needed foreign currency,” he said.
Lagos State Governor, Babajide Sanwo-Olu, represented by Commissioner for Energy and Mineral Resources, Mr. Biodun Ogunleye, also addressed the summit. He urged oil and gas stakeholders to maximize the sector’s potential and help position Nigeria as a global supplier of refined petroleum products. He affirmed Lagos State’s commitment to supporting initiatives that boost infrastructure, logistics, and regulatory frameworks to attract investment in the energy and refining sectors.
“Lagos is the economic powerhouse of Nigeria, and I acknowledge the pivotal role it plays in driving the nation’s industrial and energy sectors,” Sanwo-Olu added, noting that the Dangote Refinery exemplifies the potential for success when a strong vision aligns with favourable conditions.
