President of Dangote Refinery and Petrochemicals Company Limited, Aliko Dangote has called on Nigeria to increase its crude oil production capacity and effectively manage its crude supply to ensure adequate feedstock for domestic refineries.
This move, he argues, is crucial for the country’s transition from a net importer to a net exporter of petroleum products.
In his keynote address at a summit organized by the Crude Oil Refinery Owners Association of Nigeria (CORAN), Dangote emphasized Nigeria’s potential to become a refining hub.
Despite producing over 3.4 million barrels of crude oil per day, Africa currently imports around 3 million barrels of petroleum products daily.
These imports, primarily from Europe, Russia, and other regions, cost approximately $17 billion annually.
By capitalizing on this situation, Nigeria could become a net exporter of refined petroleum products, serving markets more competitively.
Dangote noted that this would reduce transportation costs and logistics challenges, allowing Nigeria and Africa to achieve self-sufficiency in petroleum products.
Highlighting the Dangote Refinery’s achievements, Dangote mentioned that the refinery already produces sufficient diesel and jet fuel to meet Nigeria’s demand.
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Recently, it started producing PMS and plans to ramp up production to meet domestic needs.
The refinery’s refined products have been exported to various markets, including Europe, Brazil, the UK, the USA, Singapore, and South Korea.
Dangote stressed the need for Nigeria to develop a refining capacity of 1.5 million barrels per day and prioritize domestic crude supply obligations.
He acknowledged the challenges ahead but urged the government to incentivize investors, contrasting this with the Dangote Oil Refinery, which was built without government incentives.
Dangote emphasized the global developments in the petroleum sector, particularly in Europe, which are disrupting historical trade flows for refined petroleum products in Africa.
He highlighted Nigeria’s unique position to capitalize on this opportunity and become a significant player in the global oil industry.
The summit’s theme, “Making Nigeria a Net Exporter of Petroleum Products,” was once considered unrealistic.
However, Dangote emphasized that the Dangote Petroleum Refinery and Petrochemicals is poised to transform Nigeria from a net importer to a net exporter of refined petroleum products, establishing the country as an emerging player in global downstream trade flows.
(Edited by Oludare Mayowa; omayowa@globalfinancialdigest.com; Newsroom: +234 8033 964 138)
