The Dangote Petroleum Refinery in Nigeria is set to be officially opened on Monday, bringing hope of resolving the country’s frequent fuel shortages.
According to information obtained from the company, the Dangote Refinery has the potential to support the establishment of 26,716 filling stations, generate 100,000 jobs both directly and indirectly, and create a $21 billion market for Nigerian crude oil annually.
Earlier this month, it was reported by AMBusiness reported that the Dangote Refinery, which was built by Africa’s richest man, Aliko Dangote, is scheduled to be inaugurated on May 22.
A tweet from the presidential aide, Bashir Ahmad, confirmed that the refinery’s inauguration would be conducted by President Major General Muhammadu Buhari (retd.).
Ahmad announced, “Efforts by the Federal Government to make Nigeria self-sufficient in local refining of crude oil to save the scarce foreign exchange used in the importation of petroleum products have received a boost as the 650,000 barrels per day Dangote Refinery, the world’s largest single-train refinery, is set for inauguration on May 22nd, 2023, by President Muhammadu Buhari.”
However, the refinery’s ability to achieve full production may be at risk due to a lack of crude oil supply. The refinery is dependent on a steady flow of crude oil, but Nigeria has been experiencing a decrease in oil production due to issues such as oil theft, pipeline vandalism, and insufficient investment. In April, the country’s production dropped to less than 1 million barrels per day, falling below Angola’s output.
An economist, Kelvin Emmanuel said in a report in 2022, “Lower production would affect state-owned oil company NNPC Ltd’s ability to fulfil an agreement to supply Dangote refinery with 300,000 bpd of crude.”
The document from the company further stated, “The refinery is designed to use the latest technology to comply with stringent guidelines and regulations to protect the local environment, and at the same time produce the latest environmentally friendly petroleum products for worldwide markets.”
“Dangote is one of the few companies in the world executing a petroleum refinery and a petrochemical complex directly as an Engineering, Procurement, and Construction contractor. Globally, apart from three companies, no individual owner has done the complete EPC contract for a petroleum refinery,” it said.