By Milcah Tanimu

Alhaji Aliko Dangote, President of the Dangote Group, announced an expansion of the storage capacity at his refinery by 600 million litres, bringing the total to 5.3 billion litres. Currently, the Dangote Petrochemical Refinery holds 4.78 billion litres of refined petroleum products. The announcement was made at the Afreximbank Annual Meetings and AfriCaribbean Trade & Investment Forum in Nassau, The Bahamas.

Dangote expressed frustrations over international oil companies’ refusal to sell crude oil to his refinery, attributing it to their desire to see his venture fail. When asked if his refinery would lower the petrol pump price, currently around N700 per litre, Dangote did not provide a definitive answer but highlighted how diesel prices dropped significantly when his refinery’s diesel entered the market.

“The issue of gasoline is certainly a different issue. That one is being dealt with by the government,” Dangote stated. He recounted that diesel prices fell from N1,700 to N1,200 shortly after his refinery began producing diesel, a significant price reduction of over 60%.

Dangote emphasized that his refinery would act as a strategic reserve for Nigeria, addressing the country’s lack of petrol reserves, which he deemed dangerous. “Our plant now has 4.78 billion litres of various tankage capacity. We’re adding another 600 million litres,” he noted.

He also criticized international oil companies for hindering his refinery’s progress, stating they doubted the success of his 650,000 barrels per day capacity project. Despite these challenges, Dangote remains optimistic, believing that the need for his refinery in Nigeria, the sub-region, and sub-Saharan Africa will eventually overcome these obstacles.

Dangote has been importing crude oil from the United States for his refinery and has urged the Federal Government to enforce regulations to stop the importation of dirty fuels, which he blames for rising cancer cases in Nigeria and Africa.

Despite Nigeria’s significant crude oil reserves, the country heavily relies on imported refined fuel. Dangote asserted that by the time his refinery begins selling petrol, Nigeria will no longer need to import fuel. He also plans to supply cheaper fuel to the Caribbean, noting that setting up a terminal there would provide the region with affordable energy and boost its economy.

Reflecting on his journey, Dangote revealed that a former Saudi Arabian Minister of Energy had advised him against building the refinery, citing challenges even for major oil corporations or sovereign countries. Despite such advice and the attempts of local and international “mafia” to sabotage the project, Dangote has persevered, partially paying off a $5.5 billion loan for the $19 billion refinery.

Currently, Dangote produces 1,500 megawatts of power for self-consumption, relieving pressure on the national grid. The refinery’s impact on fuel prices is expected to be significant. According to the Crude Oil Refinery Owners Association of Nigeria (CORAN), the pump price of petrol could drop to about N300 per litre with massive local production.

While oil marketers have predicted only a marginal reduction in petrol prices, Dangote remains confident that his refinery will transform Nigeria’s energy landscape. Despite a slight delay, Dangote expects petrol from his refinery to enter the market by mid-July.