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Outgoing Nigeria’s President Muhammadu Buhari commissioned an oil plant billed as Africa’s largest oil refinery, built by Africa’s richest person- Aliko Dangote-in the commercial capital of the west African country, Lagos
Outgoing Nigeria’s President Muhammadu Buhari commissioned an oil plant billed as Africa’s largest oil refinery, built by Africa’s richest person- Aliko Dangote-in the commercial capital of the west African country, Lagos. After years of delay, the refinery would begin operations in June with the first products expected on the market by August. There are reports that the delay in production could be more. Upon reaching full capacity, the refinery will have the capacity to process 650,000 barrels a day.
The commissioning of the much-expected refinery is a glowing tribute to President Buhari, who described the project as a milestone in Nigeria’s economic history. It is the largest and most modern refinery in the whole of Africa, which lacks refining capacity though the continent is reporting hydrocarbon discoveries quite often in various countries.
Nigeria is the largest producer of oil in Africa. The commissioning ceremony was attended by heads of state of Ghana, Niger, Togo, Senegal, and a representative of the Chadian leader. Despite being the largest producer of oil in Africa, Nigeria imports refined oil, which is a huge drain on its foreign exchange resources. The refinery is expected to meet the oil requirements of Nigeria. Its refineries are underperforming and not modern.
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Nigeria swaps crude worth billions of dollars for gasoline. To make it affordable to the common man, then the government subsidizes gasoline, entailing the outgo of huge resources from the government exchequer. Dangote’s refinery will not make the price of petroleum products cheaper. But it can present an opportunity for the government to remove subsidies, apart from ensuring transparency in oil pricing. Currently, the pricing system is opaque and breeds corruption. The new facility, situated on 2,635 hectares (6,500 acres) of land, entailed a cost of US$9 billion. It is expected to generate over 100,000 direct and indirect jobs.
