Toba Owojaiye In Abuja.
The Dangote Refinery, owned by Mr. Aliko Dangote, was inaugurated on May 22, 2023, in Lekki, Nigeria. It is anticipated to become the largest single-train refinery globally, with a capacity to process 650,000 barrels per day. The investment for this project exceeds $19 billion.
The commencement of operations at the Dangote Refinery and Petrochemicals may lead to the Nigerian government saving approximately N35 trillion in fiscal expenditure over the next five years. During the inauguration ceremony in Ibeju-Lekki, Lagos, Godwin Emefiele, the Governor of the Central Bank of Nigeria, revealed this information.
Amid accolades from notable personalities, including former President Muhammadu Buhari and presidents of other African countries, Alhaji Aliko Dangote, the founder and President of Dangote Group, expressed confidence that the newly commissioned refinery, with a capacity of 650,000 barrels per day, would employ over 100,000 Nigerian youths and generate more than $21 billion in revenue.
This development would also reduce the country’s dependence on fuel imports and save a significant amount of foreign exchange.
Additionally, BUA Group signed a progress acknowledgement statement with Axens of France for the proposed 200,000 barrels per day refinery in Akwa Ibom. The Group is optimistic about completing the project before 2025 and expects the refinery to be operational by 2024. The strategic location of the refinery in Akwa Ibom, Southern Nigeria, is advantageous due to the abundant availability of raw materials and the proximity to export petroleum products to regional countries.
The multi-billion-dollar integrated refinery and petrochemicals plant aim to produce Euro-V fuels and Polypropylene for both domestic and regional markets.
Looking at history, it has been beneficial for Nigeria to let the private sector drive the economy. The introduction of mobile phones initially had exorbitant prices for SIM cards and calls, but as more companies entered the market, fair competition and market forces led to a significant drop in SIM card prices from N32,000 to N100.
While achieving similar results in the petrochemical industry may be challenging, it is worth attempting. However, the question remains: can the economy and citizens survive until the refineries are fully operational?
Can the private sector rescue us from this difficult situation and return us to prosperity? Time will tell.