Aliko Dangote, Chairman of the Dangote Group, announced that his $20 billion Lagos-based refinery, which processes 650,000 barrels per day, will significantly reduce fuel prices in Nigeria. Speaking at the Afreximbank Annual Meetings and AfriCaribbean Trade & Investment Forum in Nassau, The Bahamas, Dangote highlighted the refinery's potential impact on the market.
Dangote explained that when his refinery started producing diesel, the price dropped from N1,700 to N1,200 per liter within two weeks. This demonstrates the refinery's ability to influence market prices favorably.
The refinery has a storage capacity of 4.78 billion liters for refined petroleum products, with plans to add another 600 million liters. This facility will effectively become the country's strategic reserve for petroleum products, addressing Nigeria's current lack of such reserves.
Dangote also discussed the challenges faced by his refinery in securing crude oil supplies, alleging that international oil companies were reluctant to sell crude to his refinery. Despite these challenges, he remains optimistic, stating that the country and the continent need this refinery and will overcome these temporary obstacles.
Looking ahead, Dangote revealed that the refinery plans to commence fuel supply by mid-July 2024, slightly delayed from the initial June date due to sourcing crude from the US.
In conclusion, Dangote's refinery represents a significant step towards reducing fuel prices and ensuring a stable supply of petroleum products in Nigeria. As the refinery becomes operational, it is poised to play a crucial role in transforming Nigeria's energy landscape and enhancing economic stability.
