In a recent interview with CNN, Aliko Dangote, Chairman of the Dangote Group, has revealed that international oil companies (IOCs) in Nigeria are reluctant to sell crude oil to his 650,000 barrels per day refinery.
Dangote explained that these companies prefer exporting crude oil for foreign exchange and are hesitant to shift from this practice.
Despite efforts from the Nigerian National Petroleum Company Ltd (NNPC) to provide feedstock, Dangote noted that some IOCs continue to struggle with supplying crude to the refinery. He criticized the trend in Africa of exporting raw materials and importing finished goods, highlighting that this practice hampers the continent’s growth.
Dangote said that Africa is not progressing as it should because they export raw materials and import finished products, leading to lower value and economic growth.
Additionally, Dangote mentioned the refinery’s agreement to import 24 million barrels of crude from the United States. He emphasized the environmental benefits of refining locally, which would significantly reduce CO2 emissions by decreasing the number of crude shipments.
He said that taking all the crude from Nigeria would mean 21 million barrels per month refined locally, eliminating the need for 21 ships to transport crude in and out of Africa, reducing emissions.
Despite the challenges, Dangote expressed pride in the refinery’s accomplishments and remains optimistic about its future contributions to Africa’s economy.
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