Aliko Dangote’s $20 billion oil refinery, with a daily capacity of 650,000 barrels, is set to commence operations in December.
Dangote, Africa’s richest man, shared that the refinery, situated on 2,500 hectares outside Lagos, required the construction of its own port, road, and infrastructure. In an interview with theFinancial Times, he said that extensive measures were undertaken during construction, including laying enough cable to circle the globe twice and moving 65 million metric tonnes of sand.
Despite facing delays and surpassing the initial cost estimate of $12–14 billion, the commissioning process began in May 2023. The refinery is expected to start with 350,000 barrels a day, with the Nigerian National Petroleum Company Limited (NNPCL) supplying up to six crude oil cargoes for the initial phase.
Dangote expressed confidence in reaching the refinery’s full capacity by the end of 2024, although the IMF remains sceptical about achieving more than a third of that by 2025. The facility, touted as the world’s largest “single train” refinery, aims to significantly reduce Nigeria’s foreign exchange spending on imported fuel.
Dangote stressed the importance of Nigeria, a significant oil producer for more than 50 years, refining its own crude in considerable amounts. Additionally, he disclosed his intentions to eventually launch the refinery business as a distinct company on the Lagos Stock Exchange.
