Nigerian billionaire and Chief Government Officer of the Dangote Refinery, Aliko Dangote, has disclosed that his $20 billion refinery was constructed with out receiving any incentives from the Federal Authorities.
He, nevertheless, famous that the FG wants to offer incentives to buyers to make Nigeria a prime refining hub.
“We constructed the Dangote Refinery with out a single incentive from the federal government. Nevertheless, to realize the imaginative and prescient of turning Nigeria right into a refining hub, buyers must be incentivised,” Dangote, who was represented by the corporate’s Group Government Director, Mr Mansur Ahmed, said this on Tuesday on the inaugural version of the Crude Oil Refiners Affiliation Summit, with the theme, ‘Making Nigeria A Web Exporter of Petroleum Merchandise.’
He referred to as for the implementation of the Home Crude Provide Obligation as enshrined within the Petroleum Business Act 2021, in a bid to make sure enough feedstock availability for native refineries.
He stated, “It’s unlucky that whereas international locations like Norway are placing oil proceeds right into a future fund, in Africa, we’re spending oil proceeds from the long run. We may also must prioritise the implementation of the home crude provide obligations.
“We might want to increase our crude oil manufacturing capability to help demand from new refining capability,” including that this may be achieved by constructing “1.5 million barrels per day of refining capability. This is not going to be a straightforward feat and robust authorities help shall be required to realize this.”
“The federal government of President Bola Tinubu is taking lively steps to realize this by way of fast-tracking IOC divestments and different initiatives,” he added.
It was reported that the availability of crude oil in naira to the 650,000 barrels-per-day refinery by the Nigerian Nationwide Petroleum Firm Restricted is to final for six months within the first occasion, pending an extra evaluate by the Technical Sub-Committee on Home Gross sales of Crude Oil in Native Foreign money.
A number of sources from the committee and the Dangote refinery confirmed on Monday that the naira-for-crude deal would final six months within the first section as a result of crude oil, being a global product, is priced in {dollars}.
The billionaire pressured the importance of Nigeria’s crude oil exportation, saying such is succesful to generate extra income for the federal government.
He added, “As a vibrant exporter of refined merchandise, Nigeria will witness an enchancment in its steadiness of commerce and generate the much-needed overseas foreign money. Nigeria’s potential as a refining hub is clearly not doubtful, let’s work collectively to make it occur.
“Nigeria and Africa can turn out to be utterly self-sufficient and we are able to preserve all the worth on our shores. We’ve finished it in Cement, and we are able to actually do it for petroleum merchandise.
“It’s price noting that the Dangote refinery already produces enough diesel and jet gas to fulfill Nigeria’s demand.”
The FG, by way of the Minister of Aviation and Aerospace Improvement, Festus Keyamo, on Tuesday, stated the Dangote Refinery had been authorised because the unique provider of jet gas for Nigeria’s airline operators.
