Aliko Dangote calls for sustainable management of oil revenues in Africa

Aliko Dangote, Nigerian billionaire and Managing Director of Dangote Refinery, has announced that his $20 billion refinery project was built without any incentives from the Federal Government. The statement was made at the inaugural edition of the Crude Oil Refiners Association summit, under the theme "Making Nigeria a Net Exporter of Petroleum Products".

During his speech, Dangote, represented by Mansur Ahmed, the group's executive director, stressed the need for the federal government to offer attractive incentives to investors in order to position Nigeria as a leading refining centre. "We built the Dangote refinery without any incentives from the government. However, to realise the objective of making Nigeria a refining hub, investors need to be incentivised," he said.

Dangote also stressed the importance of implementing the domestic crude oil supply obligation, as stipulated in the Petroleum Industry Act 2021. This measure is intended to guarantee sufficient availability of raw materials for local refineries. "It is regrettable that countries like Norway are investing oil revenues in a fund for the future, while in Africa we are spending oil revenues for the future. We also need to prioritise the implementation of domestic crude supply obligations", he added.

To meet the growing demand for refining capacity, Dangote has proposed an increase in crude oil production, citing the need to build an additional 1.5 million barrels per day of refining capacity. He stressed that this ambitious goal will require strong government support. "This will not be an easy task and strong government support will be needed to achieve it," he said.

President Bola Tinubu and his government, according to Dangote, are taking active steps to accelerate the divestment of the IOC and initiate other initiatives favouring the energy sector. It has also been reported that the supply of crude oil in naira by the Nigerian National Petroleum Company Limited to Dangote's 650,000 barrels per day refinery will initially last six months. This initial phase will await further review by the technical sub-committee on domestic sales of crude oil in local currency.

Sources from the committee and the Dangote refinery confirmed that the naira for crude agreement would be limited to six months in its first phase, due to the international nature of crude oil, which is generally valued in dollars.

Aliko Dangote also highlighted the potential for Nigeria's crude oil exports to generate additional revenue for the government. "As a dynamic exporter of refined products, Nigeria will see an improvement in its balance of trade and generate much-needed foreign exchange. There is no doubt about Nigeria's potential as a refining hub, let's work together to make it happen," he said.

He added: "Nigeria and Africa can become completely self-sufficient and we can retain all the value of our resources on our shores. We have done it in cement and we can certainly do it in petroleum products. It's worth noting that Dangote's refinery already produces enough diesel and paraffin to meet Nigeria's demand."

In response, Festus Keyamo, Minister of Aviation and Aerospace Development, announced that the Dangote refinery had been approved as the exclusive supplier of jet fuel to Nigerian air operators, marking a further step in the refinery's integration into the national market.

With this initiative, Dangote is reaffirming its commitment to transforming Nigeria's energy landscape and strengthening the country's economic autonomy in the oil sector.