The Dangote Group, a major player in the Nigerian and African economies, declared that the start of operations at its oil refinery represented a major step toward self-sufficiency. Nigeria would not need to import gasoline starting in June, according to Aliko Dangote, the richest man in Africa and chairman of the Dangote Group. Dangote made this declaration while outlining his plans for an energy-independent Africa at the Africa CEO Forum Annual Summit in Kigali.
The three Dangote Group businesses listed on the Nigerian Exchange Limited (NGX) reported a N513.69 billion boost in market value on the first trading day following this news. This increase demonstrates the economic optimism that the refinery’s start-up provided. Hailed as a remarkable accomplishment, Dangote’s refinery is expected to completely reshape the petroleum supply chain not only in Nigeria but also throughout West Africa, Central Africa, and beyond. With a capacity to refine 650,000 barrels of petroleum per day, the refinery will be able to meet domestic demand and produce excess for export, according to Dangote.
With confidence, Dangote declared, “As of right now, Nigeria has no reason to import anything other than gasoline and by sometime in June, within the next four or five weeks, Nigeria should not import anything like gasoline; not one drop of litre.” His goals for the refinery go beyond only supplying Nigeria with fuel. The plant is built to generate enough diesel, aviation fuel, and other petroleum products to meet the needs of the entire continent’s demand and also export to countries like Brazil and Mexico.
The refinery will manufacture polypropylene and polyethylene in addition to petroleum products to cover all of Africa’s present needs. Dangote highlighted that the refinery will also generate vital raw materials like linear alkyl benzene, which is used in the production of detergents, putting Africa in a position to become self-sufficient in these areas as well.
Dangote vowed to transform Africa’s image from one of a continent that exports raw materials to one that produces completed items. “We create raw materials and export them. When you export raw resources and someone else continues to import commodities into your continent and dump them, you are essentially exporting jobs and importing poverty. Thus, we must alter that storyline,” he said.
The refinery’s significance goes beyond just economics; it represents an African transition to sustainable development. Dangote emphasized the need of local manufacturing and job development in fighting the trend of completed goods imports, which depletes the economy and jobs. Nevertheless, there were difficulties encountered throughout the refinery’s construction. Dangote revealed that individuals who stood to gain financially from the current import-dependent system posed a significant obstacle. “The opposition had a significant effect because some individuals are accustomed to earning money through trading without the need for a refinery,” he said. Dangote’s unwavering determination made the project effective in spite of doubt and resistance.
Dangote also attacked policy incoherence, seeing it as a major obstacle to African enterprise. To ensure that trade is efficient and that the continent can support sustainable economic growth, he called on African leaders to create a setting that is more business-friendly.
