Dangote Refinery to take 2.5% of global crude market

The Dangote Refinery is set to become a major force in the global crude oil market, with Aliko Dangote saying the facility could consume about 2.5 per cent of all globally traded crude oil once it reaches full capacity.

Dangote disclosed this during a tour of the Lagos-based refinery and other facilities by Minister of State for Industry, John Enoh, and officials of the ministry.

According to the billionaire industrialist, the refinery’s scale is equivalent to about 10 per cent of the entire refining capacity of the United States, highlighting its potential impact on international crude supply and refined petroleum product markets.

Dangote used the occasion to make a broader case for industrialisation, arguing that Nigeria cannot achieve sustained economic growth, job creation and prosperity without building a strong manufacturing base.

He also pointed to the company’s recent successful bond raise as evidence that investor confidence in Nigerian businesses is improving, particularly where companies demonstrate the capacity to execute large-scale projects.

Dangote said the bond was raised below Nigeria’s sovereign benchmark despite being unsecured and unrated, describing the development as a sign that credible Nigerian companies can attract long-term capital when supported by predictable government policies.

He further warned that inconsistent policies could discourage investment, arguing that policy stability is more important to investors than government incentives.

For Dangote, the refinery itself is proof that Nigerian entrepreneurs can deliver globally significant infrastructure despite difficult operating conditions, including foreign exchange volatility, the COVID-19 pandemic and doubts from international lenders.

He urged the Federal Government to maintain policies that encourage indigenous investment, saying local businesses should be at the centre of Nigeria’s employment, foreign exchange and industrialisation strategy.

Enoh, who described the refinery as central to Nigeria’s $1 trillion economy ambition, said the Federal Government would deepen its partnership with the private sector to accelerate industrial development.

The minister said the visit had provided his team with a clearer understanding of the refinery’s operations, including issues surrounding its single-train configuration.