Dangote says Nigeria Can Turn out to be a Refining Hub

…Saves Africa’s $17bn Petrol Merchandise Imports

Nigeria should improve its crude oil manufacturing capability and successfully handle its crude provide to make sure satisfactory feedstock for home refineries, to be able to transit from a web importer to a web exporter of petroleum merchandise.

Chairman of Dangote Refinery and Petrochemicals Firm Restricted, Aliko Dangote, made this assertion throughout his keynote tackle at a summit held in Lagos by the Crude Oil Refinery Homeowners Affiliation of Nigeria (CORAN). The occasion attracted prime authorities officers and key stakeholders from the midstream and downstream sectors.

Addressing Nigeria’s potential as a refining hub, Dangote expressed concern that, regardless of producing over 3.4 million barrels of crude oil per day, Africa imports round 3 million barrels of petroleum merchandise day by day. He famous that these imports, primarily from Europe, Russia, and different areas, are estimated to price roughly $17 billion in 2023.  He urged that Nigeria may capitalise on this example to change into a web exporter of refined petroleum merchandise, because the markets can be extra competitively served from Nigeria.

“Each the crude oil and the petroleum merchandise will journey shorter distances. The logistics prices of floating storage shall be eradicated, and nations should purchase their petroleum product necessities just-in-time. Nigeria and Africa can change into utterly self-sufficient, and we are able to hold all the worth on our shores. We’ve got accomplished it in cement, and we are able to actually do it for petroleum merchandise.

“It’s price noting that the Dangote Refinery already produces ample diesel and jet gasoline to satisfy Nigeria’s demand. We not too long ago began the manufacturing of PMS and can quickly ramp as much as meet Nigeria’s wants. Our refined merchandise have been exported to various markets, together with Europe, Brazil, the UK, the USA, Singapore, and South Korea,” he added.

Represented by Engr. Mansur Ahmed, Group Govt Director of Dangote Industries Ltd, Dangote emphasised that Nigeria should develop a refining capability of 1.5 million barrels per day and prioritise home crude provide obligations to grab this chance. Acknowledging the arising and future challenges, he urged the federal government to incentivise buyers, contrasting this with the Dangote Oil Refinery, which was constructed with none authorities incentives.

“…It’s unlucky that whereas nations like Norway are placing oil proceeds right into a future fund, in Africa, we’re spending oil proceeds from the longer term. We may even must prioritise the implementation of home crude provide obligations. We might want to develop our crude oil manufacturing capability to assist demand from new refining capability. The federal government of President Bola Ahmed Tinubu is taking energetic steps to attain this by fast-tracking IOC divestments and different initiatives,” he acknowledged.

Emphasising that world developments within the petroleum sector, notably in Europe, will disrupt historic commerce flows for refined petroleum merchandise in Africa, Dangote acknowledged that Nigeria is uniquely positioned to capitalise on this chance and change into a big participant within the world oil trade. He known as for session, collaboration, and cooperation amongst stakeholders.

“As a vibrant exporter of refined merchandise, Nigeria will witness an enchancment in its steadiness of commerce and generate much-needed overseas forex. Nigeria’s potential as a refining hub is clearly not unsure; allow us to work collectively to make it occur,” he urged.

The foremost industrialist famous that the summit’s theme, “Making Nigeria a Internet Exporter of Petroleum Merchandise,” would have appeared unrealistic a number of years in the past, and added that regardless of being Africa’s largest crude oil producer, Nigeria has traditionally relied on imports to satisfy its refined petroleum product wants.

Nevertheless, he emphasised that the Dangote Petroleum Refinery and Petrochemicals is poised to rework Nigeria from a “web importer” to a “web exporter” of refined petroleum merchandise, establishing the nation as an rising participant in world downstream commerce flows; with refined merchandise already exported to varied markets, together with Europe, Brazil, the UK, the USA, Singapore, and South Korea.

Commending Dangote for this transformation, Chairman of IPPG/Waltersmith Refinery & Petrochemicals Co. Ltd, Abdulrazaq Isa, known as on the federal government to assist home refiners by making certain the supply of crude, adhering to home crude provide obligations, and implementing efficient pricing and monitoring measures to stop smuggling.

Chairman of CORAN’s Board of Trustees and CEO of Built-in Oil & Gasoline, Captain Emmanuel Iheanacho (rtd), remarked that the Dangote Oil Refinery has set a excessive normal by producing Euro-V merchandise, thus defending residents from publicity to high-sulphur merchandise. He famous that reworking Nigeria right into a web exporter will carry quite a few advantages however reiterated the necessity for elevated funding to spice up crude manufacturing, lamenting that Nigeria loses roughly $83 billion yearly by not assembly its OPEC quota.

Whereas acknowledging that tank farms stay important regardless of native refining, Iheanacho urged the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), to think about cancelling import licences, as Nigeria can now meet its native demand.

Chairman of Main Energies Entrepreneurs Affiliation of Nigeria (MEMAN), Huub Stokman,  acknowledged that Nigeria is on the verge of turning into Africa’s refining powerhouse, which is able to considerably increase the economic system. The Chairman of CORAN, Momoh Oyarekhua, additionally expressed concern over challenges associated to crude provide and acknowledged that home refiners will work with regulators and stakeholders to deal with these points.

The Minister of State for Petroleum Sources (Oil), Senator Heineken Lopkobiri,  assured that the federal government would proceed to refine frameworks to boost crude manufacturing and assist home refineries. His counterpart from the Ministry of Trade, Commerce and Funding, Dr. Doris Uzoka-Anite, emphasised the Tinubu-led administration’s dedication to making sure worth addition for mineral assets earlier than export.

Two panel classes had been held to debate Nigeria’s downstream petroleum refining sector and its potential impacts, in addition to coverage methods for attaining self-sufficiency in petroleum merchandise.