*The Federal Government of Nigeria has described the 650,000 barrels-per-day $19billion Dangote Petroleum Refinery and Petrochemicals Plant as a game-changer capable of driving refining revolution in Africa, once it comes on stream

Gbenga Kayode | ConsumerConnect

The Federal Government of Nigeria has described the 650,000 barrels-per-day Dangote Petroleum Refinery as a game-changer capable of driving refining revolution in Africa.

ConsumerConnect reports Alhaji Lai Mohammed, Honourable Minister for Information and Culture, who stated this during a media tour of the $19billion Dangote Petroleum Refinery and Petrochemicals Plant Sunday, April 3, 2022, at Ibeju-Lekki, Lagos, said the project would be a game-changer once it comes on stream.

L-R: Anthony Chiejina, Group Chief Branding and Communication Officer,  Dangote Industries Limited; Alhaji Mohammed; and Devakumar Edwin, Group Executive Director, Strategy Capital Projects and Portfolio Development, Dangote Industries Limited, in Lagos

Alhaji Mohammed, who also went on tour of the $2.5billion Dangote Fertilizer Plant, listed the benefits of the Refinery to include huge value addition that will contribute to increase in Nigeria’s Gross Domestic Product (GDP); and conservation of foreign exchange as importation of petroleum products would be eradicated.

The Minister also said the project would herald generation of Foreign Exchange (Forex)  through export of finished product; availability of petroleum products thus ending petrol queues, and attraction of foreign capital investment.

“After visiting the facilities, one can conveniently say that Dangote is leading Nigeria’s industrial revolution.

“The coming into being of such huge industrial complex as the Dangote Fertiliser Company and the Refinery were made possible by the enabling environment provided by the administration of President Muhammadu Buhari.

“Today, businesses are springing up in all sectors, thanks to a conducive business environment. Under this Administration, the Presidential Enabling Business Environment Council (PEBEC) has implemented over 150 reforms, moving Nigeria up 39 places on the World Bank Doing Business index since 2016. Mr. President also signed the Companies and Allied Matters Act, 2020 (CAMA 2020) – Nigeria’s most significant business legislation in three decades, he stated.

Mohammed further noted: “The result of this favourable business environment is the birth of new businesses, such as the $2.5 billion Dangote Fertilizer Plant that will produce 3 million metric tonnes of Urea every year; the 650,000 barrels-per-day oil refinery due to open later this year; Lekki Deep Sea Port, one of the most modern sea ports in West Africa; the 5,000 barrels-per-day Modular Refinery in Ibigwe, Imo State, and three more modular refineries to be commissioned before May 2023 in Edo and Bayelsa states just to mention a few.”

As regards the benefits of Dangote Fertilizer to the economy, the Minister for Information and Culture said prior to the inauguration of the present administration, Nigeria had a fertiliser shortfall of about 3.5 million tonnes per annum.

According to him, with the coming on stream of the Dangote Fertiliser Plant, Nigeria is now self-sufficient in the production of urea.

He said: “In fact, Nigeria is now the leading producer of Urea in Africa.

“The Dangote Fertiliser plant is already exporting to the US, India, Brazil, Mexico and Argentina. We were fortunate to witness a ship being loaded with urea for export to Argentina”

Accordimg to him,  the conducive business environment created by the government and its support had enabled the coming on stream of the $2.5 billion Dangote Fertiliser Plant which was inaugurated recently by the president.

Mohammed also disclosed  that the 650,000 barrels-per-day refinery is due for opening later this year.

Both projects would guarantee food and energy security for Nigerian consumers, he noted.

Speaking during the Minister’s visit to the facilities in Lagos, Mr. Devakumar Edwin, Group Executive Director, Strategy, Capital Projects and Portfolio Development, Dangote Industries Limited, thanked the government for the support towards the completion of the projects.

Edwin also stated that the refinery is the world’s largest single train petroleum refinery, designed to maximise production of Premium Motor Spirit (PMS) with a capacity of about 53 per cent compared to 20 per cent by other refineries.

The Group Executive Director, Strategy, Capital Projects and Portfolio Development said: “The petroleum refinery can meet 100 per cent of the requirements of Nigeria, of all the liquid products – Gasoline (PMS), Diesel (AGO), Kerosene (DPK) and Aviation Jet Fuel (Jet A-1).

“While 60 percent of the production of this petroleum refinery can meet the entire requirement of Nigeria, the rest 40 per cent will go for export, generating huge amount of foreign exchange.”

Justifying the Federal Government’s decision to acquire a 20 percent stake in the refinery, Edwin noted that the project would be of strategic national importance and a win-win for both Nigeria and Dangote Group.