Alhaji Aliko Dangote, President of the Dangote Group, has announced plans to expand the storage capacity of his refinery by 600 million liters, increasing the total capacity to 5.3 billion liters. Currently, the Dangote Petrochemical Refinery has a storage capacity of 4.78 billion liters for refined petroleum products.
Dangote revealed this expansion during the Afreximbank Annual Meetings and AfriCaribbean Trade & Investment Forum in Nassau, The Bahamas. He claimed that international oil companies have been reluctant to sell crude oil to his refinery to impede its success.
When questioned about the potential impact of his refinery on the current petrol pump price, which is around ₦700 per liter, Dangote did not provide a definitive answer. However, he noted how the price of diesel dropped significantly from ₦1,700 to ₦1,200 when his refinery began supplying the market.
“Gasoline is a different issue, handled by the government. But for diesel, when we first started, it was ₦1,700. Within two weeks, we reduced the price to ₦1,200. Despite currency fluctuations, the price remains below ₦1,200, a significant improvement from ₦1,700,” Dangote explained.
He also highlighted the refinery’s role as a strategic reserve for refined products. “Nigeria lacks strategic reserves for petrol, which is dangerous. Our plant currently has 4.78 billion liters of storage capacity, and we are adding another 600 million liters. This will make our refinery the country’s strategic reserve for petroleum products,” he said.
Dangote mentioned that international oil companies doubted his ability to succeed with the 650,000 barrels per day capacity refinery, resulting in their refusal to sell crude to him. “For 35 years, these companies have been making substantial profits. Naturally, they resist changes that threaten their earnings. But the refinery is essential for Nigeria, the sub-region, and sub-Saharan Africa,” he added.
To secure feedstock for the refinery, Dangote has been importing crude oil from the United States. He also criticized the importation of dirty fuel into Nigeria, linking it to rising cancer cases. He urged the Federal Government to enforce regulations against such imports to protect public health.
“High sulfur, polluting fuels have contributed to increasing cancer cases in Nigeria and Africa. I advise regulators to enforce quality standards for imported fuels,” he stated.
Despite Nigeria’s significant crude oil reserves, the country relies heavily on imported refined fuel. However, Dangote recently asserted that Nigeria would no longer need to import fuel once his refinery begins selling PMS in the coming weeks.
Dangote also plans to supply cheaper fuel to the Caribbean, where prices are high. He intends to establish a terminal in the region to facilitate access to affordable energy, which he believes will stimulate economic growth.
“The Caribbean’s petroleum products are expensive. By producing fuel cheaply and setting up a terminal, we can provide them with affordable energy, boosting their economies,” Dangote explained.
Recalling advice from former Saudi Arabian Energy Minister Khalid Al-Falih to abandon his refinery project, Dangote noted that he chose to pursue his vision despite the suggestion.
