Africa’s richest person commissioned the continent’s largest oil refinery, seven years late and at more than double the $9 billion cost initially planned.
The giant complex could be an answer to Nigeria’s woes, yet its citizens will have to wait a while longer to see the benefits.
Aliko Dangote, a cement and sugar magnate worth $20.5 billion, told a crowd of dignitaries in Lagos on Monday that his plant would supply its first product in July. The industry is sceptical.
There’s been no significant visible commercial activity indicating a major ramp up and, traders say, salespeople haven’t been hired yet to handle oil products.
Even the International Monetary Fund doesn’t see it reaching a third of its 650,000 barrels per day capacity in 2025. More likely, the commissioning was timed for Muhammadu Buhari to preside over a symbolic ceremony before he steps down as president next week.
Dangote will be closely watched to deliver the refinery and associated fertilizer plant in a country where several grand projects have failed. A case in point is the multi-billion dollar Ajaokuta steel mill on the banks of the Niger River that was started in 1979 but hasn’t produced any metal.
Putting aside the delay, the $20 billion refinery may finally resolve the travesty of Africa’s biggest crude oil producer having to spend more than $23 billion a year to import petroleum.
And, unlike in the past, it’s run by a billionaire who has made money from running businesses successfully, rather than siphoning off taxpayer money. Additionally, Nigeria’s state oil company, which owns 20% of the facility, committed to supplying 300,000 barrels of crude daily to the plant.
The Dangote refinery may have got off to a slow start, yet it has the potential to transform Africa’s biggest economy.
