Alhaji Aliko Dangote, the President of the Dangote Group, announced plans to increase the storage capacity of Dangote Refinery by 600 million litres. This expansion will boost the refinery’s storage capacity to 5.3 billion litres, up from its current 4.78 billion litres.
Speaking at the Afreximbank Annual Meetings and AfriCaribbean Trade & Investment Forum in Nassau, The Bahamas, Dangote explained that this enhancement aims to provide a strategic reserve of refined products for Nigeria. He highlighted the importance of having such reserves, noting that Nigeria currently lacks strategic reserves for petrol, which poses a significant risk to energy security.
Dangote also addressed challenges faced by his refinery, alleging that international oil companies were hesitant to sell crude oil to his facility. He suggested that these companies were resistant to his success due to the potential market disruption his refinery could cause. Despite these obstacles, Dangote expressed confidence in overcoming these challenges, asserting that the refinery’s success is vital for Nigeria and the broader sub-Saharan region.
When questioned about the potential impact of his refinery on petrol prices, Dangote refrained from making specific predictions. However, he pointed to the significant price reduction in diesel as an example. He noted that when his refinery began producing diesel, the price dropped from N1,700 per litre to N1,200 per litre. He expressed hope that similar benefits could be achieved for petrol once his refinery starts full-scale operations.
The refinery has already started importing crude oil from the United States to meet its feedstock needs. Dangote criticized the importation of low-quality, high-sulfur fuel into Nigeria, linking it to increased cancer rates. He urged the Nigerian government to enforce regulations to prevent the import of such harmful fuels.
Despite the challenges, Dangote remains optimistic about the refinery’s impact on the region. He announced plans to establish a terminal in the Caribbean to provide cheaper energy, highlighting the high cost of fuel in the area. By producing fuel more efficiently and cheaply, Dangote aims to support economic growth in the Caribbean by offering affordable energy.
The billionaire also recounted advice from a former Saudi Arabian Minister of Energy, who had discouraged him from building the refinery. Despite these doubts, Dangote proceeded with his ambitious project. He revealed that various local and international groups attempted to sabotage the $19 billion project, particularly during the COVID-19 pandemic, but he remained resolute.
Dangote reported that he has repaid $2.4 billion of the $5.5 billion loan taken to fund the refinery, showing significant progress despite initial delays. He emphasized that his businesses, including the refinery, generate their own power and do not rely on the national grid, producing about 1,500 megawatts for self-consumption.