"Game-Changer": Experts Stress Significance of Dangote Refinery Opening for Nigeria and Africa
12:32 25.05.2023 (Updated: 10:44 03.08.2023)
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Africa's largest oil refinery Dangote, which is also the largest single-train refinery in the world, opened on Monday in Nigeria. The complex is located in Lagos State and covers a land area of approximately 2,635 hectares.
The opening of the plant "ushers in a new era"; not only for Nigeria, making it a self-sufficient and sustainable nation, but for the entire African continent to tackle its energy problems, NJ Ayuk, Executive Chairman of the African Energy Chamber told Sputnik Africa.
The Dangote refinery is a "game-changer" for Nigeria due to its modern infrastructure and substantial processing capabilities, allowing it to produce "up to 650,000 barrels per day (bpd)", the expert stressed.
This, in turn, according to the expert, promotes the growth and development of the Nigerian downstream sector by significantly increasing refining capacity and reducing imports of expensive products.
"By reducing reliance on refined imports, the refinery cuts costs and opens opportunities for allocating funds to other areas of the value chain or investing in different sectors of the Nigerian economy. This transformation can lead to greater economic self-sufficiency and sustainability for the country," Ayuk pointed out.
Economically, the expert estimated that the plant will create a market for Nigerian oil worth $21 billion, which will strengthen the country's position as a key player in the global oil market.
The African continent will also benefit from the opening of the refinery, Ayuk believes, enabling it to address the problem of fuel shortages, increasing the availability and affordability of energy.
"With an increase in Africa's refined capacity by 1,427kpd, the refinery makes it possible for the continent to meet half of its demand for refined products, a significant step towards eliminating energy poverty in Africa by 2030," the expert underlined.
In addition, the refinery has a strong symbolic meaning for Africa as driven by local investments "without solely relying on foreign investment," serving as a testament that Africa has the potential to achieve significant growth and progress from its own local resources and initiatives, African Energy Chamber official said.
"This sense of self-reliance and empowerment resonates not only within the immediate community surrounding the refinery but also across the broader African continent. It inspires confidence and encourages other regions and countries to leverage their own resources and drive local investments to propel their own economic and infrastructural advancements," Ayuk stressed. "The opening of the Dangote Refinery is a game-changer."
Dr Mickdad Uhuru, Tanzanian social work expert and political analyst holds a similar opinion on the significance of the Dangote refinery for Nigeria and Africa as a whole.
The Tanzanian expert added that in addition to reducing Nigeria's dependence on imports, the opening of the plant will lead to increased jobs and infrastructure development in the country.
"I think that the refinery could bring employment, infrastructure development and economic growth to local community," Uhuru noted.
Speaking of the regional influence of the refinery, Uhuru stressed that it would allow Nigeria to enhance its connections with the countries of the continent.
"On the regional influence, Nigeria’s role as a major oil producers will be strengthened, enabling it to export refined products to the neighboring countries and solidify its regional economic ties. So I think the maturity of this project will help most of the nearby countries and Africans and African countries at large," the expert said.
The plant was commissioned by Nigeria's President Muhammadu Buhari on Monday, a week before he is to be succeeded by the newly elected president, Bolo Tinubu.
The complex was constructed by a firm owned by Aliko Dangote, Africa's richest man and the 86th richest man in the world with a fortune of $13.5 billion.
In April 2014, TIME magazine included him in its list of the 100 "Most Powerful People in the World.
