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Investment

Aliko Dangote, a man of action

Vessel at Dangote refinery © CC BY-SA 4.0

Nigeria has the second-largest oil reserves in Africa, after Libya, with an estimated 37 billion barrels of
proven reserves. However, it imports most of its refined products due to limited domestic refinery capa-
city. While Nigeria’s significant oil reserves are perceived by some people as a missed opportunity, Mr.
Ali Dangote, world’s 71 richest person, viewed it as a great business opportunity. He accepted the chal-
lenge to resolve the problem of Nigeria’s reliance on the importation of petroleum products such as fu-
el and diesel. In 2007, he discussed with the government about the recurring issue and proposed the
construction of a refinery that would ease Nigerians’ hardship. Although his proposal was not approved
by the former government officials, he resubmitted it to the Buhari administration, which was more re-
ceptive to the project. Mr. Dangote is enthusiastic about the enactment of the PIA (Petroleum Industry
Act).

He estimated that Nigeria has lost $50 to $60 The refinery is designed to produce 100% of
billion in investments due to the delay of the bill. Nigeria’s refined petroleum products and even
With the government’s support, Dangote be able to export surplus products. This
launched the oil refinery project that is designed integrated refinery and petrochemical project is
to not only dramatically change the energy sector an industrial city with a capacity of 650,000
in Nigeria but also to expand the economy barrels per day (bpd).Dangote group’s president
significantly.Located in Lekki Free Zone, the disclosed that the refinery will be able to process
Dangote refinery occupies 2,635 ha of land along crude oil in the third quarter of 2022, bringing
the coast of the Atlantic Ocean, near Lagos. the processing capacity to 540,000 barrels a day.
Geographically, the location was strategically Full production is expected by the end of 2022 or
chosen for its ease of transshipment of refined the beginning of 2023. It will process light and
petroleum products to international markets. In medium grades of crude oil to produce clean
addition to being Africa’s largest oil refinery, it fuels, including gasoline and diesel, as well as
will be the world’s biggest single-train facility. polypropylene and jet fuel of euro-V quality.

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