Billionaire Aliko Dangote’s mega-refinery in Nigeria has achieved a significant milestone with the reception of its first shipment of crude oil, marking a crucial step in a project stained by delays.
The refinery, situated in the Lekki free zone east of Lagos, received one million barrels from the Agbami offshore oil field in the Niger Delta. Dangote, the founder of Dangote Petroleum Refinery, termed this development as an “important milestone” and emphasized the subsequent challenge of delivering the refined products to the Nigerian market.
Originally slated for completion in “late July, early August,” the refinery holds the promise of addressing Nigeria’s recurrent fuel shortages and enhancing the quality of available fuel. Nigeria, one of Africa’s major oil producers, relies heavily on fuel imports due to the operational issues of its state-owned refineries, resulting in persistent fuel shortages for its 215 million inhabitants.
Initiated in 2013, the $18.5 billion-plus industrial venture, which experienced cost escalations, is hailed as “the largest single-train refinery in the world” by the Dangote Group. Upon reaching full capacity, it aims to have the largest crude refining capacity on the African continent, refining 350,000 barrels per day initially and expanding to 650,000 barrels per day. The facility will produce diesel, jet fuel, automotive fuel, and liquefied petroleum gas, with an additional 5 million barrels expected to come online in the coming weeks.
Situated adjacent to the new Lekki deep-water port, the refinery is strategically positioned to alleviate congestion at the Port of Lagos and facilitate the export of Dangote’s refined oil to other African nations. Aliko Dangote anticipates that “at least 40% of the refinery’s capacity will be available for export, resulting in significant foreign exchange earnings for the country” in the long run.
