Business

Dangote Refinery Seeks Billions to Secure Crude Oil Imports for Full Production Capacity

Published by Tope Fakinlede on November 19th, 2024.

Dangote Refinery Seeks Billions to Secure Crude Oil Imports for Full Production Capacity

Aliko Dangote

Aliko Dangote, Africa’s wealthiest individual, is in talks with international banks to secure billions of dollars aimed at importing crude oil for his refinery operations. According to the Financial Times, these discussions are part of efforts to meet the refinery’s target of processing 650,000 barrels per day once it reaches full capacity.

Among the financial institutions involved in the talks is the Africa Finance Corporation (AFC), a pan-African development bank. The refinery’s expansion and crude oil importation are seen as key to reaching its full operational potential.

Experts from the Knightsbridge Strategic Group (KSG), a consulting firm specializing in geopolitical intelligence, have projected that Dangote Refinery will likely achieve full capacity by 2025. They anticipate that once operational at full scale, the refinery will drive down domestic fuel prices and increase competition in European fuel markets, positioning Nigeria as a new fuel exporter.

KSG also notes that Nigeria’s shift to refining its own oil domestically could help European nations reduce their reliance on Russian oil, especially as countries like Belgium, the Netherlands, and Norway may face an oversupply of refined oil.

However, KSG warns that failure to address local refinery challenges and the removal of fuel subsidies could spark political instability in Nigeria, potentially leading to widespread protests an

d unrest.