The President of the Dangote Group, Alhaji Aliko Dangote, has announced plans to expand the storage capacity of his refinery by 600 million litres, bringing the total capacity to 5.3 billion litres. Currently, the Dangote Petrochemical Refinery has a storage capacity of 4.78 billion litres for refined petroleum products.
Speaking at the Afreximbank Annual Meetings and AfriCaribbean Trade & Investment Forum in Nassau, The Bahamas, Dangote highlighted the challenges faced by his refinery. He alleged that international oil companies have refused to sell crude oil to his refinery in an attempt to hinder its success.
When questioned about the potential impact of the refinery on the pump price of petrol, which currently sells at around N700 per litre, Dangote did not provide a definitive answer. However, he recounted how the price of diesel fell from N1,700 to N1,200 per litre shortly after his diesel entered the market, suggesting a similar effect could occur for petrol.
Dangote emphasized the strategic importance of the refinery for Nigeria, noting that the country lacks strategic reserves for petrol. “In our plant now, we had only 4.78 billion litres of various tankage capacity. But right now we’re adding another 600 million. So effectively, the refinery will be the strategic reserve of the country in terms of petroleum products,” he stated.
He also addressed the issue of dirty fuel imports, which he claimed have contributed to cancer cases in Nigeria and Africa. Dangote urged the Federal Government to enforce regulations to stop the importation of high-sulfur fuels.
Despite significant challenges, including attempts by international banks to push the project into default during the COVID-19 pandemic, Dangote has made substantial progress. He revealed that he has paid off $2.4 billion of the $5.5 billion loan for the $19 billion Lagos-based refinery.
Furthermore, Dangote disclosed plans to supply cheaper fuel to the Caribbean, aiming to reduce high fuel costs in the region by setting up a terminal for easier access to the products.
Looking ahead, Dangote’s refinery is expected to transform Africa’s energy landscape, meeting the fuel demands of West Africa and beyond. Although the release of premium motor spirit (PMS) into the market has been delayed, Dangote assured that the product would be available by mid-July.
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