In a recent interview with the Financial Times, Aliko Dangote, the President and CEO of the Dangote Group, announced that the long-anticipated $20 billion Dangote Refinery in Lekki, Lagos, is set to commence operations by refining 350,000 barrels per day.
Dangote revealed that a deal had been secured for the delivery of the first cargo of approximately 6 million barrels in December 2023.
He expressed confidence that the refinery could achieve its full capacity of 650,000 barrels per day by the end of 2024.
The Dangote Refinery, touted as the world’s largest “single train” facility with a singular distillation unit, is expected to significantly reduce Nigeria’s dependence on imported fuel and save billions in foreign exchange.
Dangote lamented the irony that Nigeria, a major oil producer for over 50 years, has struggled to refine its own crude adequately.
However, the project, which has faced delays and exceeded its budget by about $8 billion, has not been without challenges.
Dangote dismissed doubts about the refinery’s efficiency, stating that the challenges encountered during the project could have jeopardized his business empire.
He acknowledged being under intense pressure, facing allegations of underhand business practices and gaining unfair access to foreign exchange, which he vehemently denied.
Despite these challenges, Dangote expressed gratitude for overcoming the hurdles and reaching the destination.
The refinery is expected to generate substantial revenue, and plans are underway to eventually list it as a separate company on the Lagos stock exchange.