Dangote plans the opening of Africa’s largest refinery
The Chairman of Dangote groups, Aliko Dangote is planning to spend the huge sum of $13.5 billion to build one of the biggest oil refineries in the world. This is seen by many as a project that could change the economic situation of the country if he succeeds.
Nigeria, the biggest oil producer in the world imports $7 billion worth of fuel each year.
While this is seen is as a welcomed development, the poor record of the country in managing industrial projects and the decline in oil prices stand as huge risks. The Pros do seem to outweigh the risk, considering the number of people that could be impacted.
The Governor of the Central Bank of Nigeria, Godwin Emefiele believes that this is a project that could provide employment opportunities to over 70000 people in the country.
The refinery is the country’s largest industrial project and it will feature other columns for different types of processing. Apart from being capable of refining up to 650,000 barrels of oil per day, it will also contain a gas processor and a plant for ammonia.
Although Nigeria has attempted other refinery projects over the years, they all amounted to nothing. There are four refineries in the country which date back to 1970 but they all had to be shut down due to failure to deliver.
This is not the first time, Aliko Dangote has attempted oil refinery in the country. He purchased one of the plants in the country but had to opt out due to polices against privatization.
The refinery which was slated to be opened in 2016 has been met with delays. Recent reports show that it may be delayed until 2023. However, once it is up and running, it is likely to contribute hugely to the industrial development of the country.