- $15bn complex to save Nigeria 41% importation cost – Emefiele
- Nigerian private sector set to push 850,000bpd refining capacity by 2024
- CBN gives N100bn to DOR, arranging domestic refined crude sale in naira
- Fertilizers, petrochemicals to generate $2.5bn revenue annually – Dangote
The management of Dangote Oil Refinery (DOR) says it is preparing young Nigerian graduates to take over the management of its 650,000 barrels per day single train refinery when it becomes operational in 2022, Aliko Dangote, president of the Dangote Group has revealed.
Dangote, while speaking last Saturday during the tour of the Dangote Refinery by the Central Bank of Nigeria (CBN) Governor, Godwin Emefiele, said, Nigeria was blessed with great talents that are capable of running a refinery of the size of DOR, if given the necessary encouragement.
According to him, the outbreak of coronavirus in 2020, which forced many expatriates out of the construction site made it possible for the company to identify great talents that exist within Nigeria.
“One thing that gladdens my heart is the young Nigerians we have trained to take over the operation of the Dangote Refinery. These young Nigerians are the ones that are going to run the refinery when it becomes operational. We want a situation whereby the operation of the refinery will be the sole responsibility of Nigerian graduates. We can start the process by bringing in team leaders to keep giving them that training they require to run a world-class refinery,” Dangote said while explaining things to the CBN governor who toured the refinery complex.
He said the refinery management will ensure that Nigerian engineers, welders and others are the ones running the refinery.
“We have created that capacity, human capacity, equipment capacity and every other thing to ensure the successful operation of the refinery by Nigerian engineers,” the Dangote Group’s president said.
Meanwhile, Dangote said that the fertiliser and petrochemicals plants were capable of generating $2.5 billion annually while the refinery would serve Nigeria and other countries across the world.
The Dangote’s mega refinery added to the incoming BUA Group’s 200,000 bpd integrated complex in AkwaIbom State by 2024 would position Nigeria’s private sector for 850,000 bpd refining capacity, a feat that clearly dwarfs the 445,000-bpd combined capacity of the state-run four refineries.
Across several decades, the NNPC operated Port Harcourt (two refineries, 210,000 bpd), Warri (125,000 bpd and Kaduna (110,000 bpd) have never managed to achieve maximum refining capacity. Recently, the MuhammaduBuhari administration has touted selling off the plants. Whether it would be able to walk the talk is a different kettle of fish.
Meanwhile, the CBN governor, Emefiele said arrangement was being made to enable the Dangote Refinery sell refined crude to Nigeria in naira when it commences production. “Based on agreement and discussions with the Nigerian National Petroleum Corporation and the oil companies, the Dangote Refinery can buy its crude in naira, refine it, and produce it for Nigerians’ use in naira,” Emefiele said.
He noted that the $15 billion projects being constructed by the Dangote Group would save Nigeria from expending about 41 per cent of its foreign exchange on importation of petroleum products.
“That is the element where foreign exchange saved for the country becomes very clear. We are also very optimistic that by refining this product here in Nigeria, all those costs associated with either demurrage from import, costs associated with freight will be totally eliminated. This will make the price of our petroleum products cheaper in naira. If we are lucky that what the refinery produces is more than we need locally, you will see Nigerian businessmen buying small vessels to take them to our West African neighbours to sell to them in naira,” the CBN governor said.
According to him, “this will increase our volume in naira and help to push it into the Economic Community of West African States as a currency”.
He expressed his optimism that the refinery would be completed by the first quarter of next year, and it would put an end to the issue of petrol subsidy in the country. “By this time next year, our cost of import of petroleum products for petrochemicals or fertiliser will be saved, which will save Nigeria’s reserve. It will help us so that we can begin to focus on more important items that we cannot produce in Nigeria today,” Emefiele said.
He said the CBN had given a N100 billion intervention to the projects; and the apex bank was ready to support Nigerian businesses setup to uplift the country economically.
Dangote thanked President Buhari and the CBN governor for their support toward the completion of the projects. “I thank the President personally for helping us and assisting us in making sure that we are now back on track,” he said.
