Aliko Dangote, President of the Dangote Group, announced on Tuesday that the Dangote Refinery was built without any financial incentives from the government.
He made this statement during his keynote speech at the Crude Oil Refinery Owners Association of Nigeria summit in Lagos, which focused on the theme, “Making Nigeria a net exporter of petroleum products.”
In his speech, Dangote, represented by Ahmed Mansur from the Dangote Group, stressed the need for investor incentives to help Nigeria achieve its goal of becoming a refining hub. He emphasized that ensuring a steady supply of feedstock is crucial and urged an end to the practice of mortgaging crude oil.
Dangote remarked, “It is unfortunate that while countries like Norway invest oil profits into future funds, we in Africa are spending our future earnings.” He also called for prioritizing the domestic supply of crude oil and increasing production capacity to support new refining facilities.
The business leader commended President Bola Ahmed Tinubu for his efforts to facilitate the divestment of International Oil Companies and other supportive initiatives. Despite Nigeria being Africa’s largest producer of crude oil, Dangote pointed out that the country has traditionally depended on imports for its refined petroleum products.
He stated, “Nigeria is on the verge of shifting from a ‘net importer’ to a ‘net exporter’ of refined products, establishing itself as a key player in global downstream trade. This change reflects our progress as an industry and a nation. We owe a debt of gratitude to President Tinubu for his ongoing support.”
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Dangote highlighted the opportunities within Africa, noting that the continent imports about three million barrels of petroleum products daily, with half sourced from coastal nations. These countries produce over 3.4 million barrels of crude oil each day, relying heavily on imports from Europe, Russia, and other regions. He mentioned that this trade was valued at around $17 billion in 2023.
He added that Nigeria could better serve these markets, cutting logistics costs and allowing countries to procure their petroleum products just in time. “We can achieve self-sufficiency in petroleum products and keep all economic value within our borders,” he stated.
He pointed out the success achieved in cement production and expressed confidence that similar success can be achieved in petroleum refining. Dangote noted that the Dangote Refinery already produces enough diesel and jet fuel for Nigeria and is increasing its production of petrol (PMS) to meet local demands. The refinery has also started exporting products to various international markets, including Europe, Brazil, the UK, the USA, Singapore, and South Korea.
Dangote acknowledged that global shifts in the petroleum sector, particularly in Europe, could disrupt traditional trade patterns for refined products in Africa. “Nigeria is uniquely positioned to take advantage of these opportunities and become a strong player in the global oil industry. As a leading exporter of refined products, Nigeria can improve its trade balance and generate much-needed foreign currency. There is no doubt about Nigeria’s potential as a refining hub; let’s work together to make it a reality,” he added.
Lagos State Governor Babajide Sanwo-Olu, represented by Biodun Ogunleye, Commissioner for Energy and Mineral Resources, urged stakeholders in the oil and gas industry to harness the sector’s potential to become a global supplier of refined petroleum products. He reaffirmed the state’s commitment to supporting this vision by enhancing infrastructure, logistics, and regulatory frameworks necessary for investment in energy and refining.
Governor Sanwo-Olu highlighted that the Dangote Refinery in Lagos showcases the potential that arises when vision meets the right conditions for success. “We are at a crucial moment in Nigeria’s economic journey, where increasing refining capacity is vital to reducing reliance on imports and positioning Nigeria as a key player in the global energy market. This focus on refining will create jobs, boost foreign exchange earnings, and contribute to economic diversification. Lagos State is the economic hub of Nigeria, and I acknowledge the central role it plays in advancing the nation’s industrial and energy sectors,” he concluded.
