Aliko Dangote, the president and chief executive officer of the Dangote Group, said that 350,000 barrels of crude oil per day would be refined at the $20 billion Dangote refinery in Lekki, Lagos.
In an interview with the Financial Times, Dangote revealed this information and added that the refinery would receive roughly six million barrels of petroleum in December 2023.
“We’re starting with 350,000 barrels a day, “Dangote told the Financial Times, adding that a deal had already been clinched for the “first cargo of about 6mn barrels” for delivery next month.
Dangote said he believed the refinery could reach its capacity of 650,000 barrels a day by the end of 2024, although the IMF has said it doubts it will reach more than a third of that by 2025.
When operating at full capacity, the refinery—the biggest “single train” facility in the world with just one distillation unit—could save Nigeria billions of dollars in foreign cash that are presently spent on fuel imports.
Dangote deemed it “shameful” that Nigeria, a significant oil producer for almost 50 years, was unable to refine enough petroleum on its own.
Dangote said that there were moments he worried the enormous project, which was over $8 billion over budget and years behind schedule, may endanger his commercial empire.
“The challenges that we faced, I don’t know whether other people can face these challenges and even survive,” he said. “It’s either we sink or we sail through. And we thank the Almighty that at least we’ve arrived at the destination.”
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However, Dangote finds himself under a great deal of strain during what is meant to be his moment of glory. A competing industrialist has accused him of unscrupulous business dealings and of unfairly receiving foreign cash from a central bank whose previous governor is currently under federal investigation. Dangote refutes the two accusations.
In addition, Dangote claims that oil would begin to flow in a few weeks, but the Nigerian National Petroleum Corporation has not been able or willing to provide him with the crude his refinery requires.
Some even say there is no chance the refinery will operate at all or that it will operate inefficiently. There are also many rumors that Dangote, who detractors claim has unfairly profited from strong ties to four consecutive governments, has a falling out with Bola Tinubu, the newly elected president in May.
During the conversation, Dangote expressed his dissatisfaction with competition, claiming that they were unaware of the challenges involved in managing the largest employer in the private sector and largest taxpayer in the nation. “When people talk about us, sometimes it seems like the government is keeping everyone in check and letting us alone soar.”
He was unable to get into specifics about a dispute with NNPC, which holds 20% of the refinery, regarding the delivery of oil.
“Let’s not have the blame game here,” he said of NNPC’s reported difficulties in meeting the refinery’s requirements. “We have resolved all the issues of supply.”
Dangote refuted claims that NNPC was exerting pressure to acquire a larger stake in the refinery, claiming that it would bring in $25 billion annually when operating at full capacity. “I don’t believe NNPC has to purchase further shares. With what we’ve provided them, I believe they’re satisfied.
He stated that the refinery would eventually be listed as a distinct business, first on the Lagos stock exchange.
