Aliko Dangote, Chairman of Dangote Refinery and Petrochemicals Company Limited, has urged Nigeria to boost its crude oil production capacity and efficiently manage its crude supply to support domestic refineries, positioning the country as a net exporter of petroleum products. Dangote made these remarks during a keynote address at a summit organized by the Crude Oil Refinery Owners Association of Nigeria (CORAN) in Lagos.
Represented by Engr. Mansur Ahmed, Group Executive Director of Dangote Industries Limited, Dangote highlighted Nigeria’s potential as a refining hub, expressing concern over Africa’s reliance on imported petroleum products despite producing over 3.4 million barrels of crude oil daily. Africa currently imports approximately 3 million barrels of petroleum products per day, primarily from Europe, Russia, and other regions, costing around $17 billion in 2023.
“Nigeria could leverage this situation to become a net exporter of refined petroleum products, with more competitive markets served from within the country,” Dangote stated. He emphasized that shorter transport distances and reduced logistics costs would make Nigeria and Africa self-sufficient, allowing the continent to retain the value of its petroleum products.
The Dangote Refinery, he noted, already produces sufficient diesel and jet fuel to meet Nigeria’s demand, with the production of petrol (PMS) now underway. Refined products from the refinery have been exported to various international 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 to seize this opportunity. He also called for government incentives to attract investors, noting that the Dangote Refinery was built without any government support.
“While countries like Norway are investing oil proceeds into future funds, in Africa, we are spending oil proceeds from the future,” Dangote remarked. He urged the Nigerian government, under President Bola Ahmed Tinubu, to continue initiatives such as fast-tracking international oil companies’ divestments to expand crude oil production capacity.
He also noted that global developments in the petroleum sector, particularly in Europe, are set to disrupt traditional trade flows of refined petroleum products to Africa, presenting Nigeria with a unique opportunity to become a key player in the global oil industry. Dangote called for collaboration among stakeholders to capitalize on these shifts.
“As a vibrant exporter of refined products, Nigeria will see improvements in its balance of trade and generate much-needed foreign currency. Our potential as a refining hub is unquestionable, and we must work together to make it a reality,” he urged.
The summit, themed “Making Nigeria a Net Exporter of Petroleum Products,” showcased the transformation of Nigeria from a major importer of refined petroleum products to an emerging player in global downstream trade flows, driven by the Dangote Refinery’s operations.
