Africa’s richest man said it will fully come online with the refining of 650,000 barrels per day by the end of 2024.
The $20 billion Dangote Refinery, which is expected to transform Nigeria, the continent’s biggest economy, will fully come online with the refining of 650,000 barrels per day by the end of 2024, its owner, Aliko Dangote, has said.
Dangote, whose personal wealth is estimated by Forbes at $10.5 billion, told the Financial Times that by next month the first cargo of about 6 million barrels will be ready for refining.
“Dangote, 66, said he believed the refinery could reach its capacity of 650,000 barrels a day by the end of 2024,” the report said, adding that “We’re starting with 350,000 barrels a day.”
At full production, the refinery, the world’s largest “single train” facility with just one distillation unit, could save Nigeria billions in foreign exchange currently spent on imported fuel.
It was “shameful”, Dangote said, that Nigeria, a major oil producer for more than 50 years, could not refine its crude in anything like sufficient quantity.
Head of Africa practice at political risk consultancy, the Eurasia Group, Amaka Anku, said the refinery was “a massive, complicated undertaking”.
In a country where most business people looked for short-term profits, she added, it was a blessing “that we have someone like Dangote who is willing to spend billions of his own money on long-term projects”.
Dangote conceded there were times when he thought the massive project – long delayed and about $8 billion over budget – might jeopardise his business empire.
“The challenges that we faced, I don’t know whether other people can face these challenges and even survive,” he said. “It’s either we sink or we sail through. And we thank the Almighty that at least we’ve arrived at the destination,” he added.
In the interview, Dangote complained that rivals were carping because they did not understand what it took to run a business that was the country’s biggest private-sector employer and its biggest taxpayer.
“Sometimes when people talk about us, Dangote, it’s like the government is holding everybody down and allowing us alone to fly,” he stated.
He did not want to discuss in detail a tussle over the supply of crude with the Nigerian National Petroleum Company Limited (NNPC), which owns 20 percent of the refinery after a $2.76 billion equity purchase in 2021.
Nigeria produces about 1.4 million barrels of oil a day, well short of its Organisation of Petroleum Exporting Countries (OPEC) quota of 1.74 million barrels, with much pre-sold in forward contracts.
“Let’s not have the blame game here,” he said of NNPC’s reported difficulties in meeting the refinery’s requirements. “We have resolved all the issues of supply,” he stressed.
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