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Aliko Dangote, Africa’s richest man has announced his intentions to public list his Refinery, which has the capacity to produce 650,000 barrels per day on the Nigerian Exchange Limited. The move aligns with Dangote’s broader business strategy and could impact the company’s valuation and investor engagement positively. The refinery which is expected to start operations in December.
Nigeria is Africa’s largest oil producer, but it imports refined petrol despite having four refineries that have become dysfunctional. Oil explorers in the country export crude to foreign refiners and import it back to the country for sale to downstream players, eroding its foreign exchange reserves.
Dangote’s USD 20 billion refinery is poised to be a game changer. However, due to persistent delays and cost overruns, doubts emerged about whether Aliko Dangote, Africa’s wealthiest individual, would ever complete the project. The businessman revealed that the refinery which is expected to produce diesel, kerosene, and jet fuel, would start operations in December. He mentioned that a deal has been finalized for the first cargo of about 6 million barrels, scheduled for delivery next month.
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At its full planned capacity, the refinery would be able to produce 650,000 oil barrels per day, subsequently, with an initial rollout of 540,000 barrels per day. The refinery, expected to generate 27 million litres of diesel, 11 million litres of kerosene, and 9 million litres of jet fuel, will source crude from various producers in Nigeria, including the country’s state oil company.
