The Executive Chairman of African Energy Chambers, NJ Ayuk, has said the coming onstream of the $20 billion Dangote Refinery will enhance energy independence across Nigeria.
Ayuk, who disclosed this to The Tide’s source in a telephone interview, said: “The refinery will have a huge impact on energy security and affordability in Nigeria, enabling the exploitation of the country’s 37 billion barrels of proven oil reserves to address both local and regional energy needs.
“As Nigeria moves to alleviate energy poverty through domestic petroleum products, facilities such as the Dangote Refinery will be central for enhancing energy independence across the country.
“The milestone is also a testament of the capacity of Nigeria’s local producers to provide local refineries with the crude required to meet local needs.
“We commend efforts by the Nigerian government in working together with the country’s producers to enable the provision of over six million barrels of crude oil to the Dangote Refinery since late 2023.
“In addition to energy access, we are also excited to see the thousands of jobs the refinery has created for the local economy”.
He noted that, “Nigeria spends over $30 billion in fuel imports per annum and ranks as the third highest importer of petroleum products in Africa, despite representing one of the continent’s top oil and gas producers.
“The start of operations at the Dangote Refinery, Africa’s largest refining facility and the world’s largest single-train refinery, will see an end to fuel imports for the country.
“As it stands, the refinery is producing diesel and aviation fuels only. At full production capacity of 650,000 barrels of crude oil per day, it will meet 100percent of the country’s demand for refined products including gasoline, diesel, kerosene and jet fuel.
“The Dangote Refinery marks an end to Nigeria’s dependence on expensive energy imports.
“Today, Nigeria is the most populous country in Africa and has one of the world’s fastest growing populations. Population growth will see a dramatic increase in energy demand, both in-country and regionally.
“Nigeria’s focus is and should be meeting its local demand before looking into exporting to other countries.
“The scale of the Dangote Refinery, however, allows it to meet both Nigerian demand as well as regional. We look forward to the country achieving energy independence and then helping neighboring countries enhance their own energy security.
“Over the years, African markets that have been heavily dependent on energy imports have faced challenges, including security of supply and price fluctuations.
“These challenges have been further exacerbated by geopolitics and economic disruptions. Implications such as high freight and insurance costs coupled with import duties have consistently led to higher fuel costs.

“With facilities such as the Dangote Refinery, African countries have a strategic opportunity to mitigate these challenges, offering a solution to the vulnerability of the Nigerian market to global disruptions and reducing the financial burden associated with insurance and freight costs.

“As such, the project holds the potential to dramatically reduce energy costs in Nigeria”.

Ayuk continued that, “The Chamber extends its heartfelt congratulations to Nigeria for reaching this significant milestone. We believe that fostering collaboration among private and public sector stakeholders is imperative to effectively address challenges faced by African economies.

“Dangote represents a benchmark for other resource rich nations in Africa and we look forward to seeing a wave of similar developments kick off across the continent. This milestone should be the start of an evolution in Africa’s energy sector.

“With increased investment, African countries can develop the infrastructure they need to strengthen value chains and achieve energy independence”.