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🇳🇬 Nigeria /Energy & Infrastructure

Dangote refinery to consume 2.5% of globally traded crude

From The Punch · () English

Summarized and contextualized by DistantNews.

At a glance

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  • The Dangote Refinery is projected to consume approximately 2.5% of globally traded crude oil when operating at full capacity.
  • Aliko Dangote described the refinery as his biggest business risk, highlighting its successful completion despite significant challenges.
  • Dangote urged the Nigerian government to prioritize industrialization, stating that indigenous investor success is key to attracting foreign investment and achieving economic prosperity.

Aliko Dangote, President and CEO of Dangote Industries, has revealed that the Dangote Refinery, once at full capacity, will consume about 2.5% of the world's traded crude oil. This disclosure came during a visit by a delegation from the Federal Ministry of Industry, led by Senator John Owan Enoh, to the refinery complex in Lagos.

What we have achieved here has never been done before on this scale. Once one person succeeds, many others will be encouraged to follow.

— Aliko DangoteReflecting on the significance and scale of the Dangote Refinery project.

Dangote characterized the refinery project as the most significant business risk he has undertaken. He recounted the skepticism from financiers and the hurdles faced, including the COVID-19 pandemic and foreign exchange volatility. The successful completion, he asserted, demonstrates the capability of Nigerian entrepreneurs to execute projects of global scale, which he hopes will inspire others.

There is no way to create jobs and prosperity without industrialisation.

— Aliko DangoteEmphasizing the critical role of industrialization for economic growth and job creation.

He further noted that the refinery's capacity would represent roughly 10% of the United States' refining capacity. Dangote strongly advocated for industrialization to be central to Nigeria's economic strategy, emphasizing that no nation achieves prosperity without a robust manufacturing base. "There is no way to create jobs and prosperity without industrialisation," he stated.

The greatest attraction for foreign investors is the success of domestic investors. When local investors thrive, they send a powerful signal that the environment is conducive to investment.

— Aliko DangoteExplaining how the success of local businesses influences foreign investment decisions.

Dangote also highlighted that the success of domestic investors acts as the greatest attraction for foreign investment. He pointed to Dangote Industries' recent ability to raise an unsecured bond at rates below Nigeria's sovereign benchmark as evidence of growing investor confidence in credible Nigerian private-sector institutions. He stressed that policy consistency is paramount for attracting investment, as frequent policy reversals are more damaging to investor confidence than a lack of incentives. "Indigenous investors remain the strongest catalysts for that transformation," Dangote concluded, underscoring the vital role of local entrepreneurs in Nigeria's economic development.

If Nigeria is to achieve sustainable growth and become a trillion-dollar economy, industrialisation must be the foundation. Indigenous investors remain the strongest catalysts for that transformation.

— Aliko DangoteStating the foundational importance of industrialization and indigenous investors for Nigeria's economic future.
DistantNews Editorial

Originally published by The Punch. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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