By Newsshelve Correspondent.
Aliko Dangote, Chairman of Dangote Refinery and Petrochemicals Company Limited, has emphasized Nigeria’s potential to become a refining hub, saving Africa billions of dollars in petrol imports.
Speaking at the Crude Oil Refinery Owners Association of Nigeria (CORAN) summit in Lagos, Dangote stressed the need for Nigeria to enhance its crude oil production capacity and effectively manage its crude supply to transition from a net importer to a net exporter of petroleum products.
Despite being Africa’s largest crude oil producer, Nigeria has historically relied on imports to meet its refined petroleum product needs.
However, Dangote Refinery is poised to transform Nigeria into a net exporter, establishing the country as an emerging player in global downstream trade flows.
Dangote noted that Nigeria’s refining hub status would result in shorter distances for crude oil and petroleum products to travel, reducing logistics costs.
Countries would also be able to purchase petroleum products just-in-time, eliminating the need for floating storage.
This would enable Nigeria and Africa to become completely self-sufficient, keeping value on local shores.
To achieve this, Nigeria must develop its refining capacity and prioritize domestic crude supply obligations.
Dangote emphasized the need for government incentives, contrasting this with the Dangote Oil Refinery, which was built without government support.
He acknowledged challenges, urging the government to prioritize domestic crude supply obligations and expand crude oil production capacity.
Industry stakeholders commended Dangote’s efforts, calling for government support to ensure crude availability, effective pricing, and monitoring measures to prevent smuggling.
The Chairman of CORAN’s Board of Trustees, Captain Emmanuel Iheanacho, noted that transforming Nigeria into a net exporter will bring numerous benefits, including increased investment and job creation.
The Minister of State for Petroleum Resources assured continued government support for domestic refineries, while the Minister of Industry, Trade and Investment emphasized the administration’s commitment to value addition for mineral resources before export.
As Nigeria positions itself to become Africa’s refining powerhouse, the country is poised to witness significant economic growth, improved balance of trade, and increased foreign currency generation.
With collaboration among stakeholders, Nigeria’s potential as a refining hub can be realized, transforming the country into a major player in the global oil industry.
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