Yes! He is Africa’s richest man! Aliko Dangote is a household name! This time, he plans to invest up to $8 billion to build an oil refinery here in Nigeria with a capacity of around 400,000 barrels a day by late 2016, almost doubling Nigeria’s refining capacity.
Nigeria currently produces 445,000 barrels per day among four refineries, but operates well below that owing to decades of mismanagement and corruption in the system and even at that, Nigeria still relies on subsidized imports for 80 percent of its fuel needs!
Perharps with Aliko’s intervention, there will be a cut into profits made by European refiners and oil traders who would lose part of that lucrative market.
In Dangote’s words “In five years, when our population is over 200 million, we won’t have the infrastructure to receive the amount of fuel we use. It has to be done…“
Past efforts to build refineries have often been delayed or cancelled, but analysts have said Dangote should be able to build a profitable Nigerian refinery, owing to his past successes in industry and his strong government connections.
We think this would be a welcome idea! What do you think?