Dangote Refinery Gets New Operational Date After 5 Years Postponement

January 13, 2023
Aliko Dangote Spent $18.5 billion To Build Refinery, Owes $2.7 billion Debt

Africa’s richest man, Aliko Dangote, will have his Dangote Oil Refinery commissioned on January 24, 2023, after operation on the refinery was postponed for six years.

The refinery was initially scheduled to become operational in 2018. According to a report by Nairametrics, Dangote Oil Refinery will be commissioned by President Muhammadu Buhari in the fourth week of this month. 

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Buhari’s administration has supported the establishment of the refinery through funding from the Central Bank of Nigeria (CBN) and the Nigerian National Petroleum Company (NNPC) Limited. 

Prime Business Africa gathered that NNPC had financed the refinery project by acquiring 20 per cent stake in the refinery that also houses petrol chemicals and fertiliser production facilities.

The refinery, which is worth $14 billion, has received N75 billion in capital from the central bank. After commencing operation, Dangote Refinery will produce 650,000 barrels of crude daily, making it the largest in Africa. 

According to reports, the Dangote Refinery has began to receive clients from Africa and also western countries. 

“We will rather purchase from the Dangote Refinery due to the proximity of the refinery to Ghana and other neighbours,” the Ghanaian government had stated five years ago. 

The central bank had played a key role in proving foreign exchange for the refinery, which was 50 per cent funded by Dangote, with local and foreign creditors contributing loans to finance its completion. 

“The Dangote Group approached us to indicate their interest to invest in refining crude, such that petrol-chemicals, fertiliser and fuel will be produced, about three years ago. 

“Today, the three projects, which are valued at 14 billion dollars (N2.8 trillion), are on course and this is highly commendable,” CBN’s Governor, Godwin Emefiele, had stated in 2016, when the construction of the refinery just started. 

Emefiele also said: “By the time this refinery is completed, it will not only service the needs of our domestic economy but shore up our international oil investments. 

“Projects like this and our support will encourage more Nigerians to begin to think like the Dangote Group.”

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