Dangote Advocates for Nigeria as Africa’s Refining Hub, Aims to Save $17 Billion in Imports
Nigeria has the potential to become a leading refining hub and save Africa $17 billion annually in petroleum imports, according to Aliko Dangote, Chairman of Dangote Refinery and Petrochemicals. Speaking at the Crude Oil Refinery Owners Association of Nigeria (CORAN) summit in Lagos, Dangote emphasized that Nigeria could transition from a net importer to a net exporter of refined petroleum products by enhancing crude production and ensuring steady supply to domestic refineries.
Africa, despite producing over 3.4 million barrels of crude oil per day, imports around 3 million barrels of petroleum products daily, mostly from Europe and Russia. Dangote noted that local refining would reduce import dependency, shorten supply chains, and eliminate costly logistics, allowing African countries to purchase fuel on a “just-in-time” basis.
Dangote highlighted the Dangote Refinery’s achievements in meeting Nigeria’s demand for diesel and jet fuel, and its recent commencement of petrol production. The refinery is also exporting refined products to markets in Europe, the Americas, and Asia, reinforcing Nigeria’s position as an emerging player in global trade.
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To capitalize on these opportunities, Dangote called for increased domestic crude supply and expanded refining capacity to 1.5 million barrels per day. He also urged the Nigerian government to incentivize investors and streamline the crude supply process to ensure steady refinery operations.
The Minister of State for Petroleum Resources, Senator Heineken Lokpobiri, assured stakeholders of the government’s commitment to refining frameworks that boost crude production and support domestic refineries. Other industry leaders echoed Dangote’s sentiments, stressing the importance of refining capacity and calling for policy measures to prevent fuel smuggling and ensure price stability.
