Aliko Dangote, the Chairman of the Dangote Group, announced that Nigeria will no longer need to import premium motor spirit (PMS) by next month due to the plans set by the Dangote Refinery.
The refinery, which has begun supplying diesel and aviation fuel within Nigeria, possesses the capacity to meet the diesel and petrol demands of West Africa and the aviation fuel needs of the entire African continent.
Speaking as a panelist at the Africa CEO Forum Annual Summit in Kigali on Friday, Dangote declared, “Currently, Nigeria only imports gasoline, but by sometime in June, within the next four or five weeks, Nigeria should not need to import any gasoline; not even a single liter.”
Dangote highlighted the progress of the oil company, emphasizing their focus on reducing the continent’s dependency on imports.
He stated, “We have enough gasoline to supply all of West Africa, diesel for West and Central Africa, and sufficient aviation fuel for the entire continent, with additional exports to Brazil and Mexico.”
He further elaborated on the refinery’s capabilities, noting that their production of polypropylene and polyethylene will satisfy the entire demand of Africa.
Additionally, the refinery will produce base oil, essential for engine oil, and linear benzyl, a raw material for detergents. He pointed out the significance of these productions given Africa’s population of 1.4 billion and the current reliance on imported raw materials for detergents.
Looking ahead, Dangote projected that within three to four years, Africa will no longer need to import fertilizers.
The Dangote Group aims to make the continent self-sufficient in potash, phosphate, and urea, planning to increase their urea production to six million tonnes within twenty months, matching Egypt’s capacity.
Reflecting on his vision for investment in Africa, Dangote described how his commitment to ending fuel importation has led to the establishment of one of the world’s largest refineries. He contrasted this with the US capital market boom, emphasizing his choice to invest in Africa.
“Our dream, conceived just five years ago, was to grow our revenue from five billion to thirty billion dollars, and we have achieved that. Now, with our completed refinery, we are poised to meet Africa’s needs.
Currently, only Algeria and Libya do not import petroleum products; the rest of Africa does. We must change this by producing finished products locally to create jobs and avoid exporting poverty.”
Dangote also discussed the negative impact of exporting raw materials and importing finished goods, explaining, “When you export raw materials and import finished goods, you are essentially importing poverty and exporting jobs. This narrative must change.”
The refinery, commissioned in February, is already producing jet fuel and diesel. By next month, it will begin gasoline production, which will allow the refinery to process most of Africa’s crude oil.
With a capacity of 650,000 barrels per day and one million tonnes of polypropylene, the refinery will not only supply Nigeria but also West, Central, and South Africa.
Additional products include 590,000 tonnes of carbon black, used in ink and dyes. Dangote mentioned that this is just the first phase, with the second phase set to commence early next year.
