Aliko Dangote, Africa’s wealthiest individual, has revealed, through a recent interview with the Financial Times, that his company, Dangote Industries, is set to list its $20 billion oil refinery on the Nigerian Exchange Limited. Dangote highlighted that the challenges related to crude oil supply have been successfully resolved, marking a significant milestone for the ambitious project.
The move aligns seamlessly with Dangote’s broader business strategy and is poised to impact the company’s valuation and investor engagement positively. The billionaire entrepreneur expressed confidence in the project, stating, “We have resolved all the issues with crude oil supply. We are now ready to move forward with our plans to list the refinery on the Nigerian Exchange Limited.”
Nigeria, as Africa’s largest oil producer, paradoxically imports refined petrol despite having four dysfunctional refineries. This has led to the erosion of the country’s foreign exchange reserves as oil explorers export crude to foreign refiners, only to import the refined products back into Nigeria.
Dangote’s refinery, with a planned capacity of 650,000 oil barrels per day, is expected to be a game-changer in addressing Nigeria’s refining challenges. Despite doubts arising from persistent delays and cost overruns, Dangote assured that the refinery would start operations in December.
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The initial rollout is set at 540,000 barrels per day, with the refinery producing diesel, kerosene, and jet fuel. At full capacity, it is anticipated to generate 27 million liters of diesel, 11 million liters of kerosene, and 9 million liters of jet fuel. Dangote emphasized that the project’s significance extends beyond national borders, given its potential to reduce Nigeria’s dependence on imported refined products.
A key development is the finalized deal for the “first cargo of about 6 million barrels,” scheduled for delivery in the coming month. The refinery’s crude supply will be sourced from various producers in Nigeria, including the country’s state oil company.
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