The Dangote Refinery which is slated to begin operations in late 2023, is a formidable solution to Nigeria’s core petroleum crises caused by fuel subsidies and the country’s persistent fuel scarcity.
This was disclosed by Chapel Hill Denham in a report titled “Dangote Refinery can provide the needed breather for Nigeria’s public finances”
According to the study, when completed, the Dangote refinery will be the largest in Africa, surpassing the Skikda refinery in Algeria (366kb/d capacity) and Nigeria’s current largest refinery, the Port Harcourt Refinery (210kb/d capacity).
According to the report,the Dangote refinery offers a ray of hope amid the recent instances of fuel crises, which have been made worse by the FGN’s failure to refine even a drop of crude oil locally.
Chapel Hill Denham stated that Nigeria is still largely dependent on imported fuel despite having four refineries with a combined capacity of 445 kb/d. The Dangote refinery is expected to generate up to 66 million litres of PMS, ATK, AGO, HHK, slurry, and other petroleum products with a capability to refine 650 kb/d of crude.
“We believe change is imminent, with the Dangote Refinery looking set to begin operation towards the twilight of 2023. If fully utilised, we believe the refinery can redefine Nigeria’s domestic production of white products(petrol, Automotive Gasoline Oil, AGO and Dual Purpose Kerosene, DPK). and potentially turn the country into a net exporter. That said, in this report, we present what we learnt during our last visit to the Dangote Refinery.” the report added