The Dangote Group, led by President Alhaji Aliko Dangote, has announced a significant expansion of its refinery’s storage capacity. Speaking at the Afreximbank Annual Meetings and AfriCaribbean Trade & Investment Forum, Dangote revealed that the refinery would increase its storage capacity by 600 million litres, bringing the total to 5.3 billion litres.
Currently, the Dangote Petrochemical Refinery holds 4.78 billion litres of refined petroleum products. This expansion aims to bolster the refinery’s role as a strategic reserve for Nigeria, addressing the country’s lack of significant petroleum reserves.
Dangote also addressed challenges from international oil companies, alleging that they have been reluctant to sell crude oil to his refinery to hinder its success. Despite these obstacles, the refinery has managed to import crude oil from the United States to sustain operations.
Regarding the impact on fuel prices, Dangote refrained from predicting a drop in petrol prices, which hover around N700 per litre. However, he cited a substantial reduction in diesel prices from N1,700 to N1,200 when his refinery began production, suggesting a potential similar trend for petrol in the future.
Furthermore, Dangote emphasized the need for stricter regulations to prevent the importation of dirty fuels, which he claims contribute to rising cancer cases in Nigeria and Africa. He urged the Nigerian government to enforce quality controls on imported fuels.
Looking ahead, Dangote affirmed that once the refinery is fully operational, it would supply cheaper fuel to the Caribbean, aiding economic growth in the region. He also mentioned plans to establish a terminal in the Caribbean to facilitate this.
Despite facing opposition from both local and international “mafia” groups, Dangote remains committed to the refinery project. He highlighted the financial challenges during the COVID-19 pandemic but credited support from banks like Afreximbank for keeping the project on track.
The refinery, which required a $5.5 billion loan, has already repaid $2.4 billion, with $2.7 billion remaining. Dangote reiterated the importance of energy independence for industries, noting that his companies generate 1,500MW of power for self-consumption, reducing pressure on the national grid.
In a related development, modular refinery operators in Nigeria predict that the pump price of Premium Motor Spirit (PMS) could drop to about N300 per litre once local production scales up, echoing the diesel price reduction.
Elliptical News previously reported Dangote’s assertion that Nigeria would cease importing petrol by June. However, the release of PMS from the refinery has been delayed, with expectations now set for mid-July.
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