Nigeria: "The Dangote refinery will save $17 billion on oil imports".

The Chairman of Dangote Refinery and Petrochemicals Company Limited, Aliko Dangote, has said that oil production in Nigeria could save the African continent up to 17 billion dollars spent each year on importing petroleum products from Europe, Russia and other parts of the world.

However, according to Dangote, this opportunity can only be realised if Nigeria improves its crude oil production capacity and effectively manages its raw material supply to ensure constant production at its refineries. This would enable the country to move from being a net importer to a net exporter of refined petroleum products.

The statement was made at a summit organised in Lagos by the Crude Oil Refinery Owners Association of Nigeria (CORAN), where Dangote was represented by Mansur Ahmed, Group Managing Director of Dangote Industries Ltd. The summit brought together senior government officials and key players from the midstream and downstream oil sectors.

Aliko Dangote expressed his concern about the paradox that, despite producing more than 3.4 million barrels of crude oil per day, Africa continues to import around 3 million barrels of refined petroleum products per day. These imports, mainly from Europe and Russia, are expected to cost nearly $17 billion by 2023.

In his view, Nigeria could capitalise on this situation to become a competitive exporter of refined petroleum products. He explained that geographical proximity would reduce the logistical costs associated with transporting and storing products, making it more profitable for African countries to import these products.

"Crude oil and petroleum products will travel shorter distances. The logistical costs of floating storage will be eliminated, and countries will be able to buy their petroleum products on a just-in-time basis", he added.

The Dangote refinery, which is already operational, produces enough diesel and paraffin to meet national demand and has recently started producing petrol (PMS). Dangote pointed out that exports to international markets such as Europe, Brazil, the United Kingdom, the United States, Singapore and South Korea are already underway.

To capitalise on this momentum, Dangote believes that Nigeria needs to develop a refining capacity of 1.5 million barrels per day and prioritise the supply of crude to domestic refineries. He also called on the government to support local investors to boost production capacity, recalling that the Dangote refinery was built without any government incentives.

"It is regrettable that while countries like Norway are investing their oil revenues in funds for the future, in Africa we continue to spend the oil revenues of the future", he said, stressing the importance of developing local capacities to conserve the value of African resources.

At the summit, a number of industry players hailed the Dangote refinery's contribution to the transformation of the Nigerian oil sector. Abdulrazaq Isa, Chairman of Waltersmith Refinery & Petrochemicals Co. Ltd, called on the government to ensure the availability of crude oil for local refineries and to strengthen pricing and control measures to combat smuggling.

For his part, Captain Emmanuel Iheanacho, Chairman of the Board of Directors of CORAN, pointed out that the Dangote refinery produces petroleum products that comply with Euro-V standards, thereby reducing citizens' exposure to products with a high sulphur content. However, he reiterated that further investment in crude production is essential, estimating that Nigeria loses about $83 billion a year by not meeting its OPEC production quota.

The government, through Senator Heineken Lopkobiri, Minister of State for Petroleum Resources, assured that it would continue to improve regulatory frameworks to support domestic crude production and local refineries. In addition, the Ministry of Industry, Trade and Investment has reaffirmed its commitment to ensuring that Nigeria's mineral resources are processed locally before export.

With a vision of energy self-sufficiency and growing exports of refined products, the Dangote refinery represents a strategic turning point for Nigeria and Africa in the oil and gas sector. Discussions at the summit highlighted the urgent need to strengthen the country's production capacity and foster collaboration between stakeholders to achieve this objective.

"Nigeria's potential as a refining hub is immense. As a dynamic exporter of refined products, the country can not only improve its balance of trade, but also generate valuable foreign exchange and promote long-term economic growth," concluded Dangote.