NESG Predicts Dangote Refinery To Expand Nigeria's Crude Oil Market By $21 Billion

One of Africa's top think tanks, the Nigerian Economic Summit Group (NESG), has predicted that the Dangote Refinery and Petrochemical Company, scheduled to open on May 22, will provide a $21 billion market for Nigerian crude oil.

In a statement, the organisation added that the facility could supply all of Nigeria's fuel requirements, including petrol, diesel, jet fuel, and polypropylene, as well as loading bays for about 2,900 tankers and the encouragement of the construction of 33,000 housing units.

According to NESG, the Dangote refinery and petrochemical business plans to restructure Nigeria's economy and position the nation as a major participant in the global energy market by building the 650,000 barrels per day crude oil complex, which is situated on 2,635 hectares of land and contains 177 tank farms.

The NESG stated in the brief that the Dangote refinery and petrochemical company's sheer size is impressive.

This top-notch plant, which covers a vast 2,635 hectares—roughly seven times the area of Victoria Island—is a monument to Nigeria's ambition and will to take control of its energy destiny.

“With a capacity to process 650,000 barrels of crude oil per day, the refinery can cater to the entire spectrum of Nigeria’s refined product requirements.

“Additionally, the presence of a 900 KTPA polypropylene plant showcases its versatility in the production of petrochemical products.”

The Dangote Refinery and Petrochemical Company, according to NESG, aims to shift this paradigm. They emphasised that Nigeria has long relied on imported refined petroleum products, leading to economic fragility and reliance.

"With its extensive capacity, the refinery has the capability to meet 100% of Nigeria's domestic demand for all refined products," the group said. 57 million litres of petrol, 27 million litres of diesel, 11 million litres of kerosene and nine million gallons of aviation jet fuel are used per day.

“Furthermore, the surplus production of these products allows for potential exports, positioning Nigeria as a significant player in the global energy market.

“By producing refined products domestically, the Dangote Refinery and Petrochemical Company strengthen Nigeria’s energy independence and security.”

This was followed by the statement, "The integrated power plant within the refinery has a capacity of 435 MW, which exceeds the total power requirement of Ibadan Distribution Company (Disco)."

The company stated that this not only guarantees a steady supply of petroleum products but also aids in the economic growth of several states in the area.

The organisation asserted that Nigeria's decreased reliance on imports further strengthens the nation's energy security by shielding Nigeria from the impact of unpredictable world oil prices.

According to NESG, the refinery and petrochemical company's influence went beyond its refining capacity.

“The project encompasses the development of unparalleled infrastructure to support its operations. 

"This includes a self-sufficient marine facility, featuring the world’s largest order of five Single Point Mooring systems (SPMs).

“Additionally, Dangote has established the world’s largest granite quarry, a ready-mix concrete capacity, and procured an extensive fleet of trucks and cranes to meet construction requirements.

"These endeavours not only enhance local capacity but also contribute to Nigeria’s broader infrastructure development goals.”

The development of the Dangote Refinery and Petrochemical Company, according to the firm, was anticipated to produce 100,000 indirect job possibilities in addition to the thousands of direct ones, further boosting Nigeria's economy and labour market.

It said, “The imminent launch of the Dangote Refinery and Petrochemical Company is poised to mark a new era in Nigeria’s energy sector.

"With its unparalleled scale, advanced technology, and commitment to self-sufficiency, this monumental project will elevate Nigeria’s economy and energy security to new heights.

“By meeting domestic demand and potentially exporting refined products, Nigeria will establish itself as a key player in the global energy market.

"The Dangote Refinery and Petrochemical Company stand as a testament to Nigeria’s ambition, innovation, and determination to shape its own energy future.”

The project was made possible thanks to the efforts of Alhaji Aliko Dangote, the "visioner" of the Lagos Chamber of Commerce and Industry (LCCI), and the "supportive" federal government.

According to Dr Chinyere Alumina, Director General of LCCI, "LCCI regards the refinery's influence on the Nigerian economy as important. Both savings and foreign exchange will be produced.

"The refinery will boost the value of the Naira, expand the downstream sector's prosperity, and offer company expansion chances.

“It will also stimulate economic growth by impacting the country’s balance of payments.”

The chamber said that it anticipated the refinery to support further expansion and development throughout its value chain, including among others in the fields of cosmetics, plastics, and textiles.

Alumina stated: “We also see room for the development of added value in agribusiness, including the sugar backward integration projects that plan to create a strong localised supply in the sugar industry, benefiting local suppliers across the sugar value chain.

“Finally, the chamber notes that this initiative presents Nigeria as an attractive investment destination for local and foreign investors.

“Therefore, the LCCI urges the government to strengthen its commitment to creating an enabling environment for businesses.”

In a similar vein, Dangote's investment in the construction of the largest refinery in Africa was praised by Al-Mujtaba Abubakar, President of the Abuja Chamber of Commerce and Industry (ACCI).

In a statement, Abubakar said that ACCI understood the value of this investment in generating new employment, enhancing Nigeria's economy, and advancing the nation's oil and gas sector.

He emphasised that it is anticipated that the investment will draw in international money and greatly lessen Nigeria's dependency on oil imports.

The head of ACCI praised Dangote's dedication to modernising the Nigerian economy and his vision for it, noting that this investment will fundamentally alter the Nigerian oil and gas industry and demonstrate Dangote's commitment to building long-term value for both Nigeria and Africa.

According to Abubakar, the chamber praised the remarkable accomplishment and urged other businesspeople to imitate Dangote by making investments in Nigeria.

In the same spirit, the Manufacturers Association of Nigeria (MAN) yesterday expressed its congratulations to the president and management of the Dangote group on the facility's completion and impending commissioning.

Segun Ajayi-Kadir, the director general of MAN, said in a statement: "It is encouraging to note that the refinery can meet 100% of Nigeria's requirement for all refined products (Gasoline, 57 million litres per day; Diesel, 27 million litres per day; Kerosene, 11 million litres per day; Aviation Jet, 9 million litres per day) and also have a surplus of each of these products for export.

“Therefore, the coming on-board of the Dangote refinery promises to bring to a pleasant end, the nightmare of long queues at petrol filling stations and the disruption of social and economic activities that come with it.

“The refinery, when fully operational, is expected to generate $10 billion from the export of refined petroleum products and save Nigeria an estimated $10 billion in foreign exchange.”

The refinery, according to Ajayi-Kadir, is equipped with cutting-edge technology and is designed to produce using just Nigerian oil while also having the flexibility to process additional crudes from Africa, the Middle East, and US Light Oil.

The largest, second-largest, and tenth-largest dredgers in the world were used to raise the sea level by 1.5 metres in order to mitigate the possible effects of a rise in mean sea level brought on by global warming, according to MAN.

It stated, “Dangote Group is one of the few companies in the world executing a petroleum refinery and a petrochemical complex directly as an Engineering, Procurement, and Construction (EPC) contractor.

“Globally, apart from three companies, no individual owner has done the complete EPC contract for a petroleum refinery.

“For all the determination and trailblazing zeal to bring this dream into reality, we congratulate the president/CEO of Dangote Group, Alhaji Aliko Dangote, GCON, on the occasion of the official commissioning of this pride-of-Africa birthed-in-Nigeria project.”