By Moses Patience Chat
Africa’s richest man and owner of the Dangote Refinery, Mr. Aliko Dangote, has said that the planned commencement of the refinery located in Lagos, Nigeria could save up to $10 billion in foreign exchange (FX) and generate another $10 billion in exports for Nigeria when the facility finally begins operation.
The 650,000 barrels-per-day refinery, the world’s largest single-train refinery, will be inaugurated on May 22 by President Muhammadu Buhari, as disclosed by Dangote
in an interview published in a special edition of London-based The Economist Magazine, titled “The World Ahead 2023.”
While expressing his views on expectations for the creation of value-added industries in Africa, Dangote stated that Nigeria’s economy, as presently constituted, has largely been built around the extraction and exportation of its natural wealth.
He further explained that Nigeria currently imports over 90 per cent of its refined petroleum products, which amounted to roughly $10 billion in imports in 2022.
According to him, more prosperity could be created by locally refining Nigeria’s resources, and that the Dangote refinery is a major step that will lead the country towards that direction by reducing her dependence on imported refined petroleum products.
His words: “The refinery’s completion will not only create direct and indirect jobs, but also lead to skills transfer and technology acquisition opportunities that will benefit the downstream sector.
“Moreover, the refinery’s production of critical products like naphtha and polypropylene will stimulate the development of other industries, such as cosmetics, plastics, and textiles. Refineries on this scale could save Nigeria up to $10 billion in foreign exchange and generate approximately $10 billion from exports.
“We see room for development of added value in agribusiness too. Here, initiatives like our Sugar Backward Integration Projects look to create a strong localized supply in the sugar industry. With a goal to produce around 0.5 million tons of sugar per annum from locally grown sugar cane, benefits will be created across the sugar value chain for local suppliers.”
Dangote noted that the soon-to-be commissioned 650,000 barrels per day refinery in Lagos would enable Nigeria achieve self-sufficiency in refined petroleum products, as well as export to other African markets.
According to him, there are also ample opportunities to increase the country’s rice production, with the ongoing construction of six rice mills that could mill approximately one million tons per annum of locally produced rice, thereby empowering local farmers.
The renowned businessman pointed out that the Dangote group of companies also has a 2.8 million tons per annum fertiliser plant tapping into the fertiliser market, while opportunities are being explored in tomato cultivation and processing, as well as dairy production.
“With many parts of West Africa still facing food insecurity, the emergence of strong localized industries with resourceful suppliers and clear trade networks will be a big step in the right direction,” he maintained.