At the recent Crude Oil Refinery Owners Association of Nigeria (CORAN) Summit held in Lagos, Aliko Dangote, represented by Mr. Ahmed Mansur of the Dangote Group, called for enhanced investor incentives to support Nigeria’s ambition of becoming a significant refining hub. The summit, themed “Making Nigeria a Net Exporter of Petroleum Products,” highlighted the need for strategic initiatives to bolster the country’s refining capacity.
In his address, Dangote stressed the importance of ensuring a reliable feedstock supply and urged for the cessation of practices that mortgage crude oil. He emphasized that achieving the vision of making Nigeria a net exporter of petroleum products requires developing up to 1.5 million barrels per day of refining capacity. This ambitious goal, he noted, would necessitate robust support from the government and collaboration among key industry stakeholders.
“To grab this opportunity, we will need to build 1.5 million barrels per day of refining capacity. This will not be an easy feat, and strong government support will be required to achieve this,” Dangote stated. He pointed out that while the Dangote Refinery was established without any government incentives, attracting investors will require significant encouragement and support from the government to realize the vision of transforming Nigeria into a refining hub.
Dangote highlighted the necessity of implementing domestic crude supply obligations and expanding crude oil production capacity to meet the demands of new refining facilities. He praised President Bola Ahmed Tinubu for his proactive measures aimed at accelerating divestments by International Oil Companies (IOCs) and for initiating policies conducive to the sector’s growth.
Despite being Africa’s largest crude oil producer, Nigeria has historically depended on imports to fulfill its refined petroleum product needs. Dangote underscored the opportunities within the continent, noting that Africa imports approximately three million barrels of petroleum products daily, with about half sourced from coastal nations. These countries collectively produce over 3.4 million barrels of crude oil per day, with significant imports originating from Europe, Russia, and other regions.
Additionally, he highlighted that the Dangote Refinery is already producing sufficient diesel and jet fuel to meet domestic requirements and is ramping up production of Premium Motor Spirit (PMS) to cater to local demand. However, he acknowledged potential disruptions in traditional trade flows for refined products in Africa due to global shifts within the petroleum sector, particularly in Europe.
In summary, Dangote’s call for investor incentives, enhanced refining capacity, and collaborative efforts among stakeholders is crucial for positioning Nigeria as a net exporter of petroleum products and achieving energy self-sufficiency.
