Nigeria’s refining capacity must reach 1.5 million barrels per day (bpd) to attain self-sufficiency in petroleum products, according to Alhaji Aliko Dangote, Africa’s wealthiest individual and President of Dangote Industries Limited. At the inaugural Crude Oil Refiners Association (CORAN) Summit held in Lagos, Dangote shared insights on his $20 billion refinery, which boasts a production capability of 650,000 bpd and was built without any government incentives.

During his speech, delivered by Mr. Mansur Ahmed, the Group Executive Director of Dangote Industries, he emphasized that the refinery, located in the Lekki Free Trade Zone, is not only the largest single-train refinery globally but also ranks as the seventh largest overall. Since commencing operations in January 2024, the facility has been producing various white products, including diesel, aviation fuel, naphtha, and recently, Premium Motor Spirit, commonly known as petrol in Nigeria.

At the summit, Dangote reassured attendees that the refinery is adequately supplying diesel and jet fuel to fulfill Nigeria’s requirements. He also mentioned that production of petrol is increasing, with strategies in place to meet domestic demand. The products from the refinery are currently being exported to numerous markets, including Europe, Brazil, the UK, the US, Singapore, and South Korea.

To actualize the summit’s goal of turning Nigeria into a net exporter of petroleum products and achieving energy sufficiency, Dangote stressed the importance of enhancing refining capacity to 1.5 million bpd. He remarked, “Achieving this is no small task, and it will require robust government support.”

Although he noted that the Dangote Refinery was constructed without governmental incentives, he pointed out that future investors will need encouragement to engage with Nigeria’s refining sector. He emphasized the necessity of securing a consistent supply of crude oil for local refineries, highlighting the dangers of continuing dependence on external sources.

“It’s unfortunate that while nations like Norway invest oil revenues for future generations, African countries such as Nigeria are spending future oil revenues today. We must prioritize implementing domestic crude supply obligations,” Dangote stated, reinforcing the need to enhance crude production capacity to meet the demands of new refining ventures.

He expressed optimism regarding the initiatives of President Bola Tinubu’s administration, which is working to expedite divestments and efforts aimed at strengthening Nigeria’s oil resources. Dangote believes that both Nigeria and Africa have the potential to achieve complete self-sufficiency and retain value from their natural resources, citing the country’s success in becoming self-sufficient in cement production as a parallel.

In closing, he reiterated the significance of fully implementing the Domestic Crude Supply Obligation as outlined in the Petroleum Industry Act of 2021. “We need to make this a priority and expand our crude production capacity to align with our refining goals,” he concluded.

While acknowledging possible disruptions in traditional trade patterns for refined products due to global shifts, especially in Europe, Dangote contended that Nigeria is well-positioned to capitalize on these changes. “As a leading exporter of refined products, Nigeria can improve its balance of trade and generate vital foreign currency. The potential for Nigeria to become a refining hub is undeniable; let’s collaborate to turn this vision into reality,” he added.