Critics of the Dangote Refinery might be called “deniers.” Their scepticism stems from Nigeria’s history of failing its citizens, making it difficult for them to believe that an individual could succeed where the country has faltered. Building a refinery of such magnitude seems impossible, yet it becomes achievable when driven by forces greater than mere wealth, passion, or fame.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), led by Farouk Ahmed, had initially made disparaging remarks about the upcoming refinery. The resulting accusations and counter-accusations have tarnished the optics of what should be a collaborative effort in the national interest. Politics has seeped into this highly regulated industry, causing parties to take sides.
However, all stakeholders are interdependent and should consider the economic implications of their actions beyond Nigeria’s borders. Dangote requires regulation to thrive in the global oil market, while the Nigerian government needs the Dangote Refinery to address its own shortcomings. Fortunately, reason and dialogue have prevailed, with President Tinubu directing the NNPC supply Dangote Refinery with crude oil following public outcry.
The physical existence of the refinery cannot be denied. Located in Ibeju Lekki, the 2,635-hectare complex housing Dangote Petroleum Refinery and Petrochemicals FZE is expected to stabilize the market, inspire hope, and showcase Nigeria as a land of opportunity for both domestic and international investors. This monumental project is redeeming Nigeria and Africa’s image, demonstrating the country’s capacity to rise above mere importation, which has long hindered its economy.
A nation that has sought foreign direct investment globally cannot afford to be insensitive or politicize one of the few business ventures capable of generating significant foreign exchange. According to Vice President Aliko Dangote, “56% of the production would be exported, generating approximately $17 billion in foreign exchange.”
To realise the full potential of the Dangote Refinery and similar enterprises, all parties must make sacrifices and compromises to stabilize the economy. Despite scepticism, the refinery’s imposing physical structure is a testament to its significance. With a $20 billion investment, it stands as the largest private investment in Africa and a potential economic game-changer.
The 650,000-bpd refinery, utilising cutting-edge technology, can meet 100% of Nigeria’s liquid product requirements (gasoline, diesel, kerosene, and aviation jet fuel) at full capacity, in addition to producing polypropylene, fertilizer, and other petrochemicals. Naturally, this disruption to the status quo has led to backlash from groups that have long benefited from the current system.
For decades, Nigeria’s oil production capacity has been in decline due to various factors, including mismanagement, illegal refining, and unchecked exports. The Dangote Refinery has emerged as a crucial solution to fill this gap, arriving at a critical juncture when neither modular nor green refineries have been able to meet local demand.
Despite temporary setbacks and potential infractions, the Dangote Refinery seems unstoppable. The project has already overcome significant challenges, including the dredging of 65 million cubic meters of sand at a cost of 300 million euros over 18 months to reclaim land from the Atlantic Ocean.
In a country lacking infrastructure, Dangote Refinery had to build its own, including roads, ports, and marine facilities. This investment extends beyond the refinery itself, with 112 roads constructed within and outside the complex.
What drives a businessman who was already successful as a commodity importer to undertake such a massive project? It began with former President Olusegun Obasanjo encouraging Dangote to produce locally what he once imported. This led to the creation of a diversified conglomerate spanning cement production, crude oil and gas exploration, agriculture, and petrochemicals, with operations in at least 10 African countries.
For Dangote, this venture transcends personal comfort or wealth. His daughter, Fatima Dangote, Executive Director of Commercial Operations, praises her father’s incredible energy, patriotism, commitment to pro-Nigerian causes, goal-setting abilities, and resilience.
The refinery’s job creation potential is significant, providing stable livelihoods for millions of workers and their dependents. This should elicit excitement, support, and encouragement from both federal and state governments.
Dangote himself stated, “Our refinery was designed to refine different grades of crude, so we can buy from anywhere. But importation brings in poverty and ships out jobs.” The refinery currently employs 30,000 people, with a target of 100,000, 97% of whom are Nigerians, including young engineers, industrial chemists, and lab scientists who demonstrate proficiency in operating the complex machinery and systems.
For a man who has fought all his life for causes he believes in, stabilizing his refinery in the face of opposition from entrenched interests in the petroleum sector is yet another battle he must win. This fight is not just for his own sake, but for the thousands of youth employed at the refinery, for the much-needed foreign exchange, and to salvage Nigeria’s image in the complex web of international politics and economics.
The Dangote Refinery has taken on a life of its own, becoming an institution “owned” by over 200 million Nigerians. Fortunately for Dangote, most Nigerians appear to stand solidly behind him in this endeavour.
* Zainab Suleiman Okino is a syndicated columnist. She chairs the Blueprint Editorial Board and can be reached at zainabokino@gmail.com
