Dangote Refinery, a ‘game-changing initiative’ to fast-track Africa’s development ─AfDB President

*Dr. Akinwumi Adesina, President of the African Development Bank, has described the $19.5billion, 650,000bpd Dangote Oil Refinery and Petrochemicals plant as a ‘game-changing initiative’ and world-class industrial complex that will make Nigeria and Africa proud

Gbenga Kayode | ConsumerConnect

Fascinated by the magnitude of the first-rate industrial complex that promises to make Nigeria and Africa proud, Dr. Akinwumi Adesina, President of the African Development Bank (AfDB), has described the $19.5billion Dangote Oil Refinery and Petrochemicals plant projects as a “game-changing initiative” in the oil and gas sector of the West African country’s economy.

ConsumerConnect gathered Dr. Adesina, who stated this Saturday, January 22, 2022, during his tour of the Dangote Oil Refinery and Petrochemicals plant located at Lekki, in Lagos State, disclosed the project would spur Africa’s development and deepen regional integration

According to the AfDB President, the refinery project, partially funded by the African Development Bank Group, Abidjan, in Cote d’Ivoire, will create 38,000 jobs during construction.

L-R: Dr. Adesina, Alhaji Dangote and Devakumar Edwin, Dangote Group’s Executive Director for Strategy, Capital Projects and Portfolio Development

Dr. Victor Oladokun, Senior Adviser to the AfDB President on Communication and Stakeholder Engagement,  noted in a blogpost Dr. Adesina, “The Dangote group is an Africa growth accelerator ….

“I am completely blown away by the magnitude of what I see here. This is a world-class industrial complex that will make Nigeria and Africa proud.

“We at the African Development Bank are proud of this project. Every African country needs to have an Aliko Dangote to help the continent industrialise.”

Accompanying Dr. Adesina on the visit were Solomon Quaynor, AfDB Vice-President for Private Sector, Infrastructure, and Industrialisation; Lamin Barrow, Director-General for AfDB Nigeria Country Office; and Prof. Banji Oyeyinka Oyelaran, Special Adviser to the President on Industrialisation.

Dangote says refinery can meet 100 percent of Nigeria’s refined products requirements

In his remarks during the visit to the refinery plant, Dr. Oladokun stated Alhaji Aliko Dangote, President and Chief Executive of Dangote Group, said the refinery, which has the capacity to meet 100 percent of Nigeria’s requirements for refined products with a surplus for export.

Dangote noted that the project is the largest single-train petroleum refinery in the world, with 650,000 barrels per day (bpd).

It is also estimated that by 2023, Nigeria will import zero petroleum oil products – down from approximately $50billion current aunual oil product imports.

Among other facilities, the refinery includes a 440 million-liter water treatment tank farm and a housing estate built for 50,000 staff and their families onsite

The President and CEO of Dangote Group further stated: “We appreciate the support of the Nigerian Government, our lenders, and development finance institutions like the African Development Bank, without whom we would not have come this far.

“We have enjoyed a good working relationship with the Bank and this visit further encourages us.”

Devakumar Edwin, Dangote Group’s Executive Director for Strategy, Capital Projects and Portfolio Development, described the fertilizer plant as “Africa’s largest granulated urea fertilizer complex.”

Edwin was quoted to have said the fertilizer facility has two production train lines, with each producing 2,200 tonnes of ammonia and 4,000 tonnes of granulated urea each day.

The first train was built and deployed in the second quarter of 2021, and over 300,000 tonnes of urea have been produced and sold as of the fourth quarter of 2021, primarily to export markets, said he.

The second production, the Dangote Group’s Executive Director for Strategy, Capital Projects, and Portfolio Development said, is expected to be commissioned in the first quarter of 2022.

The plant now makes Nigeria a net exporter of fertilizer, Dangote Group noted.

Dangote Refinery to reduce Africa’s oil imports by 36 percent, reactivate other projects, says APPO

In a related development, the African Petroleum Producers Organisation (APPO) has said Dangote Oil Refinery would reduce importation of petroleum products production into the continent by as much as 36 percent when completed.

The APPO leadership expressed confidence that the success of the project could activate the rise of similar projects across the African despite the current focus on energy transition.

Dr. Omar Farouk Ibrahim, Secretary-General of African Petroleum Producers Organisation, in an interview said that the refinery would be supplying over 12 percent of Africa’s demand when it becomes operational.

The APPO Secretary-General and industry analyst noted: “To appreciate the impact that the Dangote Refinery is going to have on African economies and especially on the supply of petroleum products, and to some extent the conservation of scarce foreign exchange, a look at some statistics on the continent’s petroleum products demand and supply is in order.

“Currently, Africa’s daily petroleum demand is 4.3 million barrels per day (mbd). Of this volume, 57 per cent is produced locally (on the continent) while 43 per cent is imported.”

He further stated: “When Dangote’s is fully operational, the percentage of Africa’s products imported shall drop to 36 percent. This is even as the total volume of products demand rises to 5.4 mbd.

 

“You can, therefore, see the huge impact that Dangote refinery shall be made to overall products supply in Africa. Dangote shall be supplying over 12 percent of Africa’s products demand.”

Dr. Ibrahim as well said: “That is huge savings for a continent that has scarce foreign exchange and little to export. We shall save from buying abroad and from shipping and insurance costs.

“Furthermore, the success of Dangote could incentivise the rise of similar projects, the noise about energy transition notwithstanding.”

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