Dangote: Africa’s Future Oil Wealth Being Spent Today – A Call for Change
Nigerian billionaire Aliko Dangote, CEO of Dangote Refinery, revealed that his $20 billion facility was constructed without any incentives from the Federal Government. However, he emphasized that to transform Nigeria into a major refining hub, government support for investors is essential.
“We built the Dangote Refinery without a single government incentive. For Nigeria to realize its potential as a refining center, it’s crucial that investors are incentivized,” Dangote, represented by Group Executive Director Mr. Mansur Ahmed, stated at the inaugural Crude Oil Refiners Association Summit, themed ‘Making Nigeria A Net Exporter of Petroleum Products.’
He called for the implementation of the Domestic Crude Supply Obligation, as outlined in the Petroleum Industry Act 2021, to ensure local refineries have enough feedstock.
“It’s unfortunate that while countries like Norway are investing their oil revenues into future funds, in Africa we are spending future oil proceeds today. We must prioritize domestic crude supply obligations and expand our crude production to meet the demands of new refining capacities,” he noted, suggesting the goal of reaching 1.5 million barrels per day of refining capacity, which would require strong government support.
Dangote praised President Bola Tinubu’s administration for its efforts to fast-track divestments from International Oil Companies and other initiatives aimed at achieving this goal. Reports indicate that a naira-for-crude deal with the Nigerian National Petroleum Company Limited for the 650,000 barrels-per-day refinery will initially last for six months, subject to further review.
Dangote highlighted the importance of Nigeria’s crude oil exports, stating that it could generate significant revenue for the government. “As a strong exporter of refined products, Nigeria can improve its balance of trade and secure the foreign currency it desperately needs. The potential for Nigeria as a refining hub is clear; we must work collaboratively to make this vision a reality.”
He added, “Nigeria and Africa can achieve complete self-sufficiency and retain all value within our borders. We’ve done it with cement, and we can certainly achieve it for petroleum products.”
The government has also designated the Dangote Refinery as the exclusive supplier of jet fuel for Nigeria’s airline operators, as confirmed by the Minister of Aviation and Aerospace Development,
Festus Keyamo.
