Dangote Speaks On Building $20 Billion Refinery, Says It Was Done Without Govt Funding

Billionaire businessman, Aliko Dangote has stated that his 650,000 barrels per day capacity refinery was built without a single penny from the Nigeria government.

The President of Dangote Group stated this at the ongoing Crude Oil Refinery Owners Association of Nigeria Summit in Lagos.

Dangote, who was represented by the Executive Director, Dangote Group, Engr Mansur Ahmed, said it is worth noting that the Dangote Refinery already produces sufficient diesel and jet fuel to meet Nigeria’s demand.

Naija News reports that the $20 billion refinery came on stream on January 12, 2024, with a refining capacity of 300,000 barrels but increased to 400,000 barrels by the end of September 2024.

On September 15, the refinery began distribution of its petrol with the Nigerian National Petroleum Company Limited as the sole off-taker.

Dangote said despite being the largest producer of crude oil in Africa, Nigeria has for decades largely depended on imports to meet its refined petroleum product needs.

Airline Operators In Nigeria To Buy Jet A1 Fuel From Dangote Alone – Keyamo

Meanwhile, the Minister of Aviation and Aerospace Development, Festus Keyamo, has revealed that Nigerian airline operators would now buy Jet A1 fuels exclusively from Dangote Refinery.

According to Keyamo, the decision is based on an agreement with the airline operators, which has his blessings.

The Minister made the revelation during an interview with Channels TV, which aired on Tuesday.

He explained that the new development, coupled with the government’s naira for crude agreement with Dangote Refinery, will ease the pressure on foreign exchange.

The airline operators just met recently. With my blessing, it’s a decision from the airline operators in Nigeria that they should only buy from Dangote refinery Jet A1.

“You can see that yesterday we started naira-for-crude purchase with Dangote. It’s all Naira, no Dollar component,” Keyamo said.

He added that the timing of the agreement is right and would also shield airline operators from the impact of crude oil price fluctuations, ultimately reducing their operational costs.

“The price will no longer be subjected to the varying factors of the international market, nor the headwinds of oil price in the international market. It will be in local currency so we can be clear as to the cost of it. We will buy in naira. I’m sure we are going to have access to cheaper Jet A1 fuel,” Keyamo added.

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