Nigeria's Dangote oil refinery begins operations with diesel, aviation fuel: summary

What we know

• Dangote Petroleum Refinery, Africa’s largest oil refinery valued at $18.5 billion, has officially kicked off production, marking a significant step towards liberating Nigeria and the subregion from the reliance on the importation of petroleum products.
• The refinery, which boasts a daily oil processing capacity of 650,000 barrels, commenced official operations on January 12 with the production of essential fuels like diesel, kerosene, and aviation fuel to supplement Nigeria's energy self-sufficiency initiative.
• This achievement aligns with the African Union's commitment to creating a common market through the African Continental Free Trade Area (AfCFTA).
• The commencement of the refinery is expected to save Nigeria up to $10 billion in foreign exchange while generating an additional $10 billion in exports, marking a transformative impact on the nation's economic landscape.
• Initially estimated at $9 billion in 2013, the refinery's completion cost totalled $19.5 billion, with funding divided into 50% equity investment and 50% debt finance.

What they said

The President of Dangote Group, Aliko Dangote, said, “We have started the production of diesel and aviation fuel, and the products will be on the market before the end of the month. This is a big day for Nigeria. We are delighted to have reached this significant milestone," he said in a statement. Dangote highlighted the refinery's role in fulfilling the group's vision of promoting self-sufficiency and global competitiveness. The facility, set to reach full production later in the year, is designed to meet the highest quality standards, delivering high-value products. He emphasised that once the refinery is fully operational, approximately 40% of its capacity will be available for export, ushering in substantial foreign exchange inflows into the country. “Once our plant is fully on stream, we expect that at least 40 per cent of the capacity will be available for export, and this will result in significant foreign exchange inflows into the country. Beyond this, we intend to ensure that our plants are run at the highest capacity of utilisation and the highest efficiency to enable us to export competitively to other markets,” he added.