Aliko Dangote, President of Dangote Group, has emphasized the need for Nigeria to halt mortgaging its crude oil to secure sufficient feedstock for local refineries. Speaking at a summit by the Crude Oil Refinery Owners Association of Nigeria in Lagos, Dangote expressed concern that while countries like Norway invest oil proceeds into national wealth funds, African nations are spending oil revenues meant for future generations.
Dangote, represented by Mansur Ahmed, Group Executive Director, also called for prioritizing domestic crude supply obligations and expanding production to meet refinery demand. He revealed that the 650,000 barrels-per-day Dangote refinery was built without government incentives, but stressed that for Nigeria to become a regional refining hub, investors would need support.
Citing global trends, Dangote highlighted that 1.8 million barrels of refining capacity will soon come online in Kuwait, China, and Bahrain, while Europe tightens its environmental standards. He urged Africa to seize the opportunity by increasing refining capacity by 1.5 million barrels per day, noting that many African nations import petroleum products despite producing significant amounts of crude.
Meanwhile, Minister of Aviation, Festus Keyamo, announced that Dangote’s refinery has been designated the exclusive supplier of jet fuel for Nigerian airlines. Keyamo noted that sourcing Jet A1 from the Dangote refinery would shield operators from volatile global oil prices and reduce their costs, as the deal is denominated in naira.
