Dangote Refinery to End Fuel Crises

Dangote refinery

Dangote Group has once again assure Nigerians that its refinery, described as the world’s largest refinery, will put an end to the recurring fuel crises in the country.

Mr. Mansur Ahmed, the Executive Director, Stakeholder Management and Corporate Communications, Dangote Group,  said by the time the refinery was ready, Nigeria would be transformed from a fuel importing country to an exporting one.

“That plant itself is the largest single refinery plant anywhere in the world. In addition to the refinery, we are also going to produce some petrochemical products from the same complex. These are polyethylene and polypropylene,” Ahmed said while speaking with journalists in Abuja.

He further stated that “the petrochemical plant, which covers 250,000 hectares of land and is located in the Lekki Free Trade Zone in Lagos, would gulp $14bn, with capacity to refine 650 million barrels of crude oil a day”.

The executive director urged the government to deregulate the downstream sector so that investors could play in an open market.

Ahmed stated, “One would prefer if it was deregulated so that we know that we are playing in the open market. The key issue is that if I buy crude, whether from Nigeria or anywhere else, I buy at an international price. If I produce a product and want to sell, I should sell that product at an international price.

“So, I will not be affected by the decision of local pricing; it is on that concept that we went into refining. We expect that we will buy our input, especially crude, for international market price, and that when we produce products, we will sell those products at international prices.

“The refining industry is a global industry; if you use those international benchmarks, you shouldn’t really worry about the price. It is about time Nigeria completely deregulated the downstream industry. The kind of reason that has compelled the government to fix petroleum product prices has not been tenable.”

About the Author

Samed Olukoya
Samed Olukoya is the CEO/Founder of investorsking.com, a digital business media, with over 10 years experience as a foreign exchange research analyst and trader.

1 Comment on "Dangote Refinery to End Fuel Crises"

  1. Chief Ambrose Osuan | March 30, 2016 at 9:29 am | Reply

    Were the federal government of Nigeria failed for years an indigenous company is rising to the task, the fuel importation has wrecked Nigeria foreign reserve by a pronounce margin. It’s spill_over effects is the core of inflationary enclave and trend in Nigeria, may be dangote will have to give nigerians water and light through dangote water resources and dangote electric dam. Gooooooood luck and long life to Aliko Dangote he is the life wire of Nigeria’s economy without any iota of skepcicizm.

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