Will Nigeria’s biggest oil refinery alleviate chronic fuel shortages?
Africa’s biggest oil refinery has been opened in Nigeria, where it is hoped it will alleviate chronic fuel shortages. Nigeria is a major oil producer but most of this is sent abroad while it has to import the refined fuel used in vehicles and elsewhere. As a result the country often faces chronic fuel shortages.
What is Dangote Refinery?
The Dangote Refinery is an oil refinery owned by Dangote Group that was inaugurated on 22 May 2023 in Lekki, Nigeria. When fully operational, it is expected to have the capacity to process about 650,000 barrels of crude oil per day, making it the largest single-train refinery in the world. The investment is over US$19 billion.
Why is Nigeria’s oil refinery a game-changer?
As a result the country often faces chronic fuel shortages. This is the problem that the $19bn (£15.2bn) refinery, owned by Africa’s richest man, Aliko Dangote, is intended to tackle. "This is a game-changer for the Nigerian people," said President Muhammadu Buhari.
What happened to Nigeria’s oil refineries?
It also includes a power station, deep seaport and fertiliser plant. Nigeria’s existing refineries have been completely shut down for over three years owing to oil theft, pipeline vandalism and structural neglect.