S&P Global, a leading international financial analytics firm, has spotlighted the Dangote Oil Refinery as a potential game-changer for Nigeria’s foreign exchange (forex) challenges. During an onsite visit to the refinery at Ibeju-Lekki, Lagos, S&P Global officials, accompanied by representatives from the Federal Ministry of Finance, assessed its impact on Nigeria’s economy.
The Dangote Refinery, with a capacity of 650,000 barrels per day (bpd), is the world’s largest single-train refinery. S&P Global’s Director and Lead Analyst for Sovereign and International Public Finance Ratings, Ravi Bhatia, commended the facility for its potential to turn Nigeria into a net exporter of petroleum products. This shift could alleviate the nation’s forex pressures and stimulate economic growth.
“The Dangote Refinery is exceptionally impressive,” Bhatia remarked after a thorough tour. “Processing 650,000 barrels a day, it promises significant cost savings and forex benefits by reducing Nigeria’s dependency on imported refined fuels.”
Devakumar Edwin, Vice President of Oil and Gas at Dangote Industries Limited (DIL), confirmed that production of premium motor spirit (PMS) will commence in July 2024. The $20 billion facility is designed to meet 100% of Nigeria’s demand for petrol, diesel, kerosene, and aviation jet fuel, with excess capacity available for export.
Currently operating at 350,000 bpd, the refinery is expected to ramp up to 500,000 bpd by mid-2024. The facility adheres to stringent international standards, including Euro V specifications, US EPA, EU emission norms, DPR emission/effluent norms, and ARDA standards.
S&P Global praised Aliko Dangote, President of Dangote Industries Limited, for integrating advanced technologies and maintaining rigorous quality control measures. The refinery features a state-of-the-art Central Control Unit and a self-sufficient marine facility designed to handle the world’s largest vessels.
In 2023, Nigeria spent approximately N12 trillion on petroleum product imports, marking an 18.68% increase from the previous year, according to the National Bureau of Statistics (NBS). The Dangote Refinery’s launch is expected to significantly reduce this expenditure and bolster Nigeria’s economy.