International oil companies reluctant to supply crude to Nigerian refinery-Dangote cries out

By Innocent Raphael

Chairman of the Dangote Group, Aliko Dangote, has revealed that international oil companies (IOCs) operating in Nigeria are hesitant to supply crude oil to his 650,000 barrels per day refinery.

In a recent interview with CNN, Dangote attributed this perceived reluctance to the IOCs’ preference for exporting crude oil to generate foreign exchange. Despite the efforts of the Nigerian National Petroleum Company Ltd (NNPC) to supply feedstock, the IOCs continue to prioritize external markets.

“The NNPC is doing its best, but some of the IOCs are struggling to give us crude. Everybody is used to exporting, and nobody wants to stop exporting,” Dangote stated.

He expressed concern over Africa’s economic model, which relies heavily on exporting raw materials and importing finished goods, leading to undervaluation of raw materials.

“Africa is not going the way it should because we export raw materials and import finished goods. Raw material is always priced at a ridiculous amount compared to finished goods,” he said.

Dangote also lamented that certain individuals profiting from oil imports are not supportive of the refinery’s success.

The refinery recently signed an agreement to import 24 million barrels of crude oil from the United States. Dangote explained that the facility would process about 21 million barrels of Nigerian crude oil monthly, significantly reducing the need for oil imports and exports within Africa.

“Almost 21 ships will no longer leave the African continent, either from Nigeria or Angola. We will be able to take those crudes, refine them, and distribute the product. I feel very proud as an African that we have been able to demonstrate that it can be done, and we’ve done it,” he remarked.

Dangote noted that reducing the number of ships transporting crude oil would help lower CO2 emissions. “In totality, when you calculate, you are talking about 480 ships of 1 million barrels,” he added.

Reflecting on the challenges faced in building the refinery, Dangote admitted that had he known the complexities involved, he might not have pursued the project.

“We didn’t know what we were getting into when we said we wanted to build the refinery. If we knew, we would have run away. We wouldn’t have tried it, no. I can tell you. It was very, very tough,” he said.

When asked about the refinery’s profitability, Dangote replied, “We will start making money soon. It is not about making money only; it also gives us great satisfaction that we are making Africa great.”