Alhaji Aliko Dangote, President of the Dangote Group, announced on Tuesday that the Dangote Refinery was built without any government incentives. Speaking at the Crude Oil Refinery Owners Association of Nigeria (CORAN) Summit in Lagos, with Mr. Ahmed Mansur representing him, Dangote stressed the importance of investor incentives to fulfill Nigeria’s goal of becoming a petroleum refining hub.
The summit, themed “Making Nigeria a Net Exporter of Petroleum Products,” focused on transforming Nigeria from a net importer to a net exporter of refined products. Dangote highlighted the necessity of ensuring adequate feedstock availability and urged an end to mortgaging crude oil. He pointed out that while countries like Norway are reinvesting oil revenues into future funds, many African nations tend to spend their future earnings prematurely.
He called for domestic crude supply obligations and an increase in crude oil production capacity to satisfy the growing demands of Nigeria’s refining industry. Dangote commended President Bola Ahmed Tinubu for promoting divestments by International Oil Companies (IOCs) and supporting domestic refining efforts.
Despite being Africa’s largest crude oil producer, Nigeria has historically depended on imports for its petroleum product needs. Dangote emphasized that the country is now ready to play a significant role in global downstream trade, with the Dangote Refinery in Lagos already producing sufficient diesel and jet fuel for domestic consumption while ramping up production of PMS (Premium Motor Spirit).
He noted the substantial opportunities in Africa, which imports approximately three million barrels of petroleum products daily, half of which come from coastal countries. Dangote asserted that Nigeria and Africa could achieve self-sufficiency in petroleum products, retaining economic value locally, much like the Dangote Group did in cement production.
The Dangote Refinery has begun exporting products to markets in Europe, Brazil, the UK, the USA, Singapore, and South Korea, bolstering Nigeria’s status as a global exporter of refined petroleum products. He urged stakeholders to collaborate in realizing Nigeria’s potential as a refining hub.
Lagos State Governor Babajide Sanwo-Olu, represented by Commissioner for Energy and Mineral Resources Mr. Biodun Ogunleye, encouraged oil and gas stakeholders to leverage the sector’s potential to transform Nigeria into a global supplier of refined petroleum products. He emphasized the state’s commitment to providing infrastructure, logistics, and regulatory support to attract investment in the energy and refining sectors.
Sanwo-Olu underscored the necessity of increasing refining capacity to reduce Nigeria’s import reliance, stimulate job creation, enhance foreign exchange earnings, and contribute to economic diversification. He reaffirmed Lagos’ pivotal role as Nigeria’s economic powerhouse, driving the nation’s industrial and energy sectors forward.