The President of Dangote Group, Aliko Dangote, says the Dangote refinery in Lagos State was constructed without government incentives.

Dangote made this known while speaking at the Crude Oil Refinery Owners Association of Nigeria (CORAN) Summit in Lagos on Tuesday, October 8, 2024.

Dangote, who was represented by Group Executive Director of Dangote Group, Ahmed Mansur, Dangote Group, said there was a need for investor incentives to realise the country’s vision of becoming a refining hub.

He stressed the importance of ensuring sufficient feedstock availability while calling for an end to mortgaging crude oil.

“It is unfortunate that while countries like Norway are investing oil proceeds into a future fund, we in Africa are spending our future earnings,” Dangote said.

He also called for prioritising the implementation of domestic crude supply obligations and expanding crude oil production capacity to meet the demands of new refining facilities.

He commended the efforts of President Bola Tinubu, highlighting the government’s active steps to accelerate International Oil Companies (IOC) divestments and other initiatives.

Despite being Africa’s largest crude oil producer, Dangote said Nigeria had long relied on imports to meet its refined petroleum product needs.

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He added: “Nigeria is poised to transition from a net importer to a net exporter of refined products, positioning itself as a significant player in global downstream trade.

“This impending transformation is indicative of our progress as an industry and as a nation. We owe a debt of gratitude to President Tinubu for his unwavering support throughout this journey.”

Dangote also addressed the opportunities in Africa, noting that the continent imports about three million barrels of petroleum products daily, with half of that coming from coastal countries.

He highlighted that African countries produce over 3.4 million barrels of crude oil daily, with imports primarily sourced from Europe, Russia, and other regions.

The billionaire businessman said: “In 2023 alone, this trade was estimated at approximately $17 billion.

“However, these markets will be better served from Nigeria, reducing logistics costs and allowing countries to purchase their petroleum product requirements just in time.”

Also speaking at the event, Lagos State Governor Babajide Sanwo-Olu urged oil and gas stakeholders to leverage the sector’s potential to become a global supplier of refined petrol.

Sanwo-Olu, who was represented by the Lagos State, Commissioner for Energy and Mineral Resources, Biodun Ogunleye, affirmed the state’s commitment to supporting the vision through initiatives that enhance infrastructure, logistics, and regulatory frameworks necessary for investment in energy and refining sectors.

He noted that the Dangote refinery, located in Lagos, exemplifies the potential that exists when vision meets conducive conditions for success.

The Star