Dangote Refinery Will Generate $21 Billion and Provide Employment For Over 100,000 Youths – Aliko Dangote

••• Buhari congratulates Dangote Group, says, “Government and people of Nigeria are proud of the doggedness and tenacity of Dangote as an entrepreneur”

By People’s Voice Nigeria | News

Amid encomium from eminent personalities, which included President Mohammadu Buhari and five other African heads of state, the President of the Pan-African Conglomerate, Dangote Industries Limited (DIL), Aliko Dangote, disclosed yesterday that the newly commissioned 650,000 pbd refinery would employ over 100,000 Nigerian youths as well as generate over $21 billion, therefore saving the country huge forex that would have been used for fuel importation. The company, according to him, now has over 33,000 employees.

L-R: President/Chief Executive, Dangote Industries Limited, Aliko Dangote; President of the Federal Republic of Nigeria, Muhammadu Buhari; President of Ghana, Nana Akufo-Addo; President of Senegal, Macky Sall; President of Niger, Mohamed Bazoum; President of Togo, Faure Gnassingbe, at the commissioning of Dangote Petroleum Refinery and Petrochemicals FZE, (650,000 barrels per day Petroleum Refining and 900,000 tonnes per annum Polypropylene Production) in Lagos on Monday, May 22, 2023.

Much to the excitement of Nigerians, Dangote said the commissioning has marked the beginning of the new journey of self-sufficiency in refined petroleum products and exportation of same, just as has been achieved in Cement and lately fertilizer.

Dangote lamented that the current fuel crisis has had a negative impact on the nation’s economy, and that informed his decision to build a world-class refinery that would change the trend. He faced challenges but decided to trudge on.

L-R: Senate President, Sen. Ahmad Ibrahim Lawan; Vice President-Elect, Sen. Kashim Shettima; Lagos State Governor, Babajide Sanwo-Olu; President/Chief Executive, Dangote Industries Limited, Aliko Dangote; President of the Federal Republic of Nigeria, Muhammadu Buhari, at the commissioning of Dangote Petroleum Refinery and Petrochemicals FZE, (650,000 barrels per day Petroleum Refining and 900,000 tonnes per annum Polypropylene Production) in Lagos on Monday, May 22, 2023.

L-R: Lagos State Governor, Babajide Sanwo-Olu; Senate President, Sen. Ahmad Ibrahim Lawan; President/Chief Executive, Dangote Industries Limited, Aliko Dangote; President of the Federal Republic of Nigeria, Muhammadu Buhari, cutting the tape; President of Togo, Faure Gnassingbe; Ogun State Governor, Dapo Abiodun; and Group Executive Director, Strategy, Capital Projects & Portfolio Development, Dangote Industries Limited, Devakumar Edwin, at the commissioning of Dangote Petroleum Refinery and Petrochemicals FZE, (650,000 barrels per day Petroleum Refining and 900,000 tonnes per annum Polypropylene Production) in Lagos on Monday, May 22, 2023.

He highlighted events leading to his firm’s decision to build its own refinery after his attempt to acquire one of the existing moribund ones did not materialize, noting that he decided to change his marketing strategy and settle for gigantic project ever undertaken by an individual the world over.

According to him, the refinery plant would be run at the highest effective and efficient level for maximum benefits to all Nigerians, noting that “we will replicate what we achieved in cement and fertilizer by attaining self-sufficiency and becoming a net exporter.

L-R: Lagos State Governor, Babajide Sanwo-Olu; President/Chief Executive, Dangote Industries Limited, Aliko Dangote; President of the Federal Republic of Nigeria, Muhammadu Buhari, and Group Executive Director, Strategy, Capital Projects & Portfolio Development, Dangote Industries Limited, Devakumar Edwin, at the commissioning of Dangote Petroleum Refinery and Petrochemicals FZE, (650,000 barrels per day Petroleum Refining and 900,000 tonnes per annum Polypropylene Production) in Lagos on Monday, May 22, 2023.

Dangote assured Nigerians that 40 percent of the production capacity will be available for export with the plant’s coming on stream, guaranteeing raw materials for the plastic and pharmaceutical industries.

In his remark, President Buhari congratulated Dangote Group, saying, “The 650,000 barrels a day of crude will enable our country to achieve self-sufficiency in refined products and even have some supplies for export. The government and people of Nigeria are proud of the doggedness and tenacity of Dangote as an entrepreneur.

L-R: Lagos State Governor, Babajide Sanwo-Olu; President/Chief Executive, Dangote Industries Limited, Aliko Dangote; President of the Federal Republic of Nigeria, Muhammadu Buhari; President of Togo, Faure Gnassingbe; Ogun State Governor, Dapo Abiodun; and Group Executive Director, Strategy, Capital Projects & Portfolio Development, Dangote Industries Limited, Devakumar Edwin, at the commissioning of Dangote Petroleum Refinery and Petrochemicals FZE, (650,000 barrels per day Petroleum Refining and 900,000 tonnes per annum Polypropylene Production) in Lagos on Monday, May 22, 2023.

Said he, “This feat at this time of the nation’s economic development clearly made this event a notable milestone for our economy and the game changer for the downstream petroleum products not only for Nigeria but the entire African continent. Dangote Group has helped transform our economy from heavy import dependence to a net exporter in some critical industries, including cement and fertilizer.”

He noted that the economy, which has been stressed for many decades by huge deficits in economic infrastructure and over a decade of insurgency, has also been severely impacted by several external crises, including the global financial crisis, the collapse of the world crisis the coronavirus pandemic, and the Russia-Ukraine war.

“The consequences of these challenges constitute a severe strain on our economy and limiting government’s ability to provide basic infrastructure without resorting to borrowing. The government therefore decides to focus attention on creating an enabling environment for the private sector to thrive and fill the enormous gap in investments not only in infrastructure, but also in all critical sectors.

“We recognize that without active participation of the private sector and a strong commitment to public-private partnership, the economy will not be able to continue to meet the challenge and economic growth”, while expressing the hope that the coming administration will continue to apply such innovative schemes to accelerate the fruition of critical infrastructure, in particular roads and gas pipelines.

Governor of the Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, while commending Mr. Dangote for the successful completion of the refinery project, said it would not only aid that nation’s domestic petrol needs but also help in generating export revenues for our country.

Emefiele recalled: “In September 2013, when Alhaji Aliko Dangote announced his plans for the refinery, it was estimated to cost about US$9 billion, of which US$3 billion was projected as equity investment by the Dangote Group and the balance financed through commercial loans. Due to an array of factors, the project was eventually completed with a total of US$18.5 billion, with funding distributed into 50 percent equity investment and 50 percent debt finance. I am proud to state that the commercial loan component of the project was financed majorly by our domestic banks, with the balance sourced from foreign banks. The Central Bank of Nigeria also partnered, as always, with the Dangote Group in ensuring the successful completion of the project by providing about N125 billion, to cover domestic currency requirements for the venture.

“What you may not be fully aware of, Your Excellencies, is that the Dangote Group has started repaying some of the commercial loans even before the commissioning of this facility. This reflects the commercial capability of the group and its chairman. I am pleased to inform everyone today that, following extensive repayments, outstanding debt has dropped appreciably from over US$9 billion to US$3 billion.”

The CBN Governor commended Nigerian banks, saying they not only partnered with the project through effective financing but were keenly aware of the importance of the project for our nation. “They provided immense support and exceptional understanding, even when interest payments and principal repayment had fallen due.”

He described the successful completion of the refinery to President Buhari’s astute vision to ensure that Nigeria produces what Nigerians consume and that we consume what we produce. “The refinery and petrochemical project by the Dangote Group is a testament to your vision for Nigeria. It shows that, regardless of what the world thinks, Nigeria can be self-sufficient in all products that we consume and at the same time export our excess output to the rest of the world.”

“Aside from enumerating our strategic efforts in agriculture and other critical sectors, a sterling project that we highlighted was the gigantic Dangote Refinery and Petrochemical Project.” The world doubted our willpower to succeed with this project. In hindsight, I could appreciate their skepticism because they do not understand how a single individual could build a refinery capable of serving an entire nation. To them, projects of this magnitude are usually only undertaken by sovereigns, not individuals.”

Group Managing Director of the Nigerian National Petroleum Company Ltd. (NNPC), Mele Kolo Kyari, said the NNPC was happy to partner with Dangote Refinery because the project has potential for smooth supply of petroleum and would guarantee healthy competition for the benefit of the nation’s economy.

He said the NNPC Ltd. was committed to adding value to the potential of the project, noting that the new Petroleum Industry Act will provide security of supply of refined products and protect the plant. The NNPC boss added that he was happy the refinery is coming on board at a time when the subsidy on imported products has become unbearable for the government.

In their respective goodwill messages, the Presidents of Ghana, Senegal, Niger, Benin Republic, and Chad expressed satisfaction that the Dangote Refinery will serve the West African region and that their countries will be beneficiaries, saying the Dangote Refiner is an African company for Africa by an African entrepreneur.