Adeniyi Afeez
Africa’s richest businessman, Aliko Dangote launched a refinery worth the construction of 650,000 barrels per day on Monday, 22 of May, 2023
Aliko Dangote commission refinery which took place at the lekki, free trade zone area of the commercial hub Lagos state where some West African heads of state attended.
At the event, the outgoing President General Muhhamadu Buhari presented for the commission of the refinery the capacity worth of 650,000 barrels per day as a President of Nigeria at that time.
According to a Cable news network (CNN) report, the giant refinery built by the Dangote group which is owned by Africa’s richest man Aliko Dangote, aims to produce up to 53Million liters of gasoline per day, as well as 4Million liters of diesel and 2Million liters of aviation fuel daily.
As he (Dangote) was speaking during the program, he described the refinery as the “world’s largest” single train refinery.
That over the two years ago they make the commitment to invest into downstream petroleum which is to make a response to increases petroleum products of the country and the consequences challenges, and its negative impact of lives and livelihood of the people.
In 2007, Dangote group entered the refinery under the development privatization program where the outcome of the exercise was reversed and the payment was returned.
This motivated the group to rethink market entry strategy and business, and subsequently committed to enter the market boldly with the vision to invest In refinery that will transform the industry in Nigeria and Africa as a whole, that’s why the organization went for the biggest refinery ever built in the world.
By deciding on plans, design with the state of heart technology and scale of capacity which build a game changer in Africa and global market.
The facility were to produce is aims to reposition Nigeria as a key player in the downstream petroleum sector of the global market.
The huge investment is over $18.5 dollars which prompted the organization to support and contribute their quota to the federal government to sustain the effort to transform the economy of Nigeria to a good shape.
President Muhammad Buhari also said while he was giving a speech that the refinery will make Nigeria achieve self-sufficient in refined products, also have surplus for export.
He mentioned, the president elect Bola Tinubu will surely sustain the enhanced business environment that facilitated such a project.
By also saying, the mega industry we are commissioning today is a clear example of what we can achieve when entrepreneurs are encouraged and supported, also when an enabling environment is created for business to thrive.
Buhari said, I believe that my successor, President-elect Bola Tinubu will improve the economy and business environment and also strengthen the framework of our public private partnership policies to accelerate the pace of our economic growth and development.
He stated, I’m very excited that I’m leaving the economy in competent hands.
He also urged and encouraged other Nigeria great entrepreneurs to cultivate the habit of iconic Nigeria industrialists and join the government in accelerating the growth in order to realize the country globally recognized economic potential and Nigeria must not allow an outsider to use some of our leaders to destroy the economy and the potential of trajectory.
The former governor of the central bank of Nigeria, Godwin Emefiele, also mentioned that Nigeria history has been re-writing through to the construction of the refinery.
Given its proposed capacity, the refinery is more than enabled to meet all Nigerians domestic fuel consumption while the excess production will be available for exports, this will not only aid at the domestic production needs but also helps generate export revenue for the country.
He said, when Dangote announced the plans for refinery in 2013 it was estimated to cost 9 billion dollars, so by 2017 during the commencement of the project, it got escalated and due to an array factor the project was completed with the sum of 18.5 billion dollars with the 50% equity investment by Dangote and 50% debt finance by the local banks.
The takeover of the refinery comes with numerous economic benefits to Nigeria, in such a way that, it will generate thousands of direct jobs of over 135, 000 permanent jobs and also the electricity of about 12,000 mega worth will be generated.
He moves further, at available data generated as of 2014, central bank of Nigeria shows at least 30% of foreign exchange required to meet Nigeria import needs wealth into the importation of refined petroleum products.
According to the balance of payments the cost of petroleum import into Nigeria doubled over a 5year period from about 8.4 billion dollars in 2017 to 16.2 billion dollars, including an annual average of 11 billion dollars before rising further.
That the rate of average annual cost of petroleum products in Nigeria could reach 30 billion dollars by 2027 if Nigeria continues to rely on petroleum import. These are figures suggest that the refinery could engender foreign exchange savings, to the country of between $25 billion and $30 billion annually.
Overall, Dangote refinery is a blessing to Nigeria. He added.
The labour party presidential candidate Peter Obi said, Dangote refinery was another breakthrough for the development of new Nigeria, which I am committed to. That new nation will be an enabling environment for a booming private sector that will see the rise of many micro, small and medium-scale businesses that will boost the nation’s economy and foster increased productivity among our people.
Obi said he was honored to be invited to the commissioning of the refinery by congratulating Dangote for the success of the world-class project, which he believes will be very beneficial to Nigeria’s economy.
Dangote saw the prosperity, the diversity of the country and built the biggest empire in the world for Africa, Babajide Sanwo-Olu, Lagos state governor stated.
The refinery is about the opportunity which has provided jobs for the youths and the young people of our country.
That over 150,0000 of sole direct and indirect jobs have been created and not for 55year old not to talk of 65year old. The job is only for the youths in their 20s and 30s and is for them to believe that indeed Nigeria is a place for them and consider the youth as an important and preferable tool in developing, and ensuring that the very best is always with us.
He stated, the conversation is, how many Dangote are we going to build, like from port-harcourt to Enugu and from Sokoto to Maduguri also from Lagos to Abuja that they need the likes of Aliko Dangote in our country.
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