The biggest business news out of Nigeria last week was that NNPC stopped playing politics with Aliko Dangote and his $20 billion refinery project by supplying the crude feed stock needed for the refinery to start business.
NNPC delibrately stalled delivering the crude oil consignment for reasons best known to them since May this year, but it seems the worst is over as the state oil company last week delivered 1 million metric tonnes of crude feedstock to the refinery, located in Lekki, Epe, Lagos.
Dangote must have sighed a huge sigh of relief when the ship carrying the feedstock from the Agbami oil well berthed at Dangote Port, a private-owned port owned by Dangote located inside the refinery.
Aside from this 1 million barrel of crude oil, NNPC is projected to deliver another 5 million barrels of oil any moment from now, which will take the total number of barrels of crude oil delivered from Agbami oil field to 6 million barrels of crude oil.
This is why it matters.
The Dangote refinery, with a capacity of 650,000 barrels per day (bpd), is projected to generate an annual revenue of $27 billion at full capacity.
This new refinery is expected to yield approximately $27 billion in annual revenue from the sale of products such as gasoline and chemicals. Initially, it will refine 350,000 barrels per day, with plans to eventually increase this capacity to 650,000 barrels per day.
The Dangote refinery will start refining any time soon. The initial refinery phase will focus on producing diesel, aviation fuel, and gas, with the production of petrol slated for a later stage.
Yesterday, Dangote’s bestie and his hype man, Femi Otedola, took to social media to shower praise and appreciation on his best friend for delivering against all odds.
Let’s hear him.
I heartily congratulate my bestie, Aliko Dangote.
as the 8th Wonder of the World—the $20 Billion (Twenty Billion Dollars)
The refinery officially commences production. The Dangote Petrochemical Complex, which consists of the world’s largest single-train 650,000 barrels per day petroleum refinery, a 1 million metric tonnes of polypropylene per-annum facility, and two of the world’s largest fertiliser trains with a capacity of producing 3 million metric tonnes of urea, is much more than just an industrial milestone; it’s a testament to the visionary leadership and relentless pursuit of excellence of one of Africa’s finest and most dogged patriots. I had a front-row seat as this vision was conceptualised and took shape. And I am familiar with the sleepless nights you’ve had to work through over the last decade to bring this dream to fruition. This refinery is a beacon of hope for millions of Nigerians and Africans. It is also at the vanguard of championing environmental sustainability. With its carbon capture technologies and storage processes, it will capture up to 90%+ of the CO2 emitted and also play a significant role in reducing well-to-tank carbon emissions from crude oil maritime transportation, thereby playing its own role in helping Nigeria meet its target for net-zero emissions by 2060. The refinery recycles 100% of its water. The heat coming out of the process is fully captured to produce 50 MW of power. Dangote is also producing Euro 5 to replace the bad Euro 5 that has been dumped in Africa for a long time. Shipping 65,000 barrels per day of crude out of Nigeria and 650 kbpd of refined products to Nigeria and nearby countries, which is 480 ships of 1 million barrels per day, will save 1.5 to 2.5 million metric tonnes of CO2 emissions. This will help the environment. By meeting our requirements for all refined petroleum products, it will champion energy security and independence for our nation and act as a catalyst for a new era of prosperity for the subcontinent. It promises economic transformation for Nigerians today and for generations to come. Congratulations, Aliko Dangote
. Africa is proud of you! … F.Ote he conc;uded
I’m happy for Aliko Dangote, and I hope the success of his refinery project will spur and push my generation of young business executives to dream big and think big.
Dangote has shown us that the world belongs to dreamers, and the impact of this refinery on our economy is one reason I am genuinely excited for him.