Nigeria has opened the largest oil refinery in Africa, which is expected to help with the country’s current fuel shortages. A big producer of oil, Nigeria exports majority of its oil and is forced to import refined petroleum used in cars and other machinery.
As a result, the nation frequently experiences fuel shortages. This is the issue that Aliko Dangote, the richest man in Africa, hopes to solve with his $19 billion refinery.
A game changer
President of Nigeria, Muhammadu Buhari said, “This is a game-changer for the Nigerian people,” said President.
Due to oil theft, pipeline vandalism, and structural neglect, Nigeria’s current refineries have been totally shut down for more than three years.
The plant, which is currently not in use, has the ability to manufacture more than enough petroleum products to meet the demands of the entire nation at a rate of roughly 650,000 barrels per day. A power plant, a deep-water port, and a fertiliser mill are also included.
If everything goes well, the plant might significantly improve the lives of Nigerians: “Every time there is fuel scarcity, I don’t open my shop because there’s no light [electricity] to work and I can’t buy fuel for my generator,” a young hairdresser from Lagos told the BBC.
During the refinery’s opening on Monday, Dangote gave an overview of his plans for it, saying, “Our first goal is to ramp up production of the various products to ensure that within this year, we are able to fully satisfy the nation’s demand for quality products.”
What effect the plant will have on fuel costs in a nation where retail prices are subsidised is unclear. Since they consumed at least a fifth of the national budget last year, the administration claims these subsidies will soon be eliminated.
The largest single-train refinery in the world, Dangote’s Lagos facility took over seven years to construct and features a single integrated distillery system that can manufacture a range of goods and petrochemicals, and not just a specific unit for every product type.
It is one of the final significant projects President Buhari will launch before he leaves office next week after two terms in government. Bola Tinubu, who succeeded in presidential elections in February, will take over from President Buhari.
According to Henry Adigun, an expert in oil and gas, Monday’s launch was “more political than technical.”
