The biggest single-train oil refinery in the world, built by Africa’s richest man, Aliko Dangote, cost $19 billion (£15 billion) and was inaugurated by Nigerian President Muhammadu Buhari.
Nigeria is Africa’s largest oil producer, and the government thinks that by building a refinery, it can begin exporting refined fuels instead of importing them.
Nigeria currently imports more than 80% of its refined petroleum products. The country is the largest importer of refined petroleum products in Africa. Local production will therefore massively cut the country’s import bill.
This would eliminate the country’s frequent fuel shortages and provide employment for tens of thousands of people.
Dangote Industries claims that its massive 130-field-long petroleum refinery, which will only contain a single crude distillation unit, is the largest refinery of its kind in the world.
The project, which began in 2017 is expected to help Nigeria meet 100% of it’s refined petroleum product needs (gasoline, 72 million litres per day; diesel, 34 million litres per day; kerosene, 10 million litres per day and aviation jet, 2 million litres per day), with surplus products for the export market.
The refined petroleum output from the refinery in combination with other refineries in Nigeria is expected to meet the shortfall of the estimated daily consumption of 72 million litres of petrol.
According to CNN, around 50% of the funds used to build the refinery came from Dangote’s equity investment while the other half came from debt finance from banks such as Access and Zenith banks.
Mr. Buhari is completing one of his final public appearances before he leaves office as president next Monday by officially launching the facility.
How many oil refineries are there in Nigeria
Nigeria has four large oil plants. Two are in the city of Harcourt, and each of Warri and Kaduna has one. Most of the oil sources are in the Niger Delta.
Most of these oil sources are owned by companies outside the country and the Dangote Petroleum Refinery has the biggest pipeline infrastructure in the world, with 1,100 kilometres of pipes that can carry 3 billion standard cubic feet of gas per day.
