Lagos, Nigeria – S&P Global, headquartered in Manhattan, New York City, has highlighted the transformative potential of the Dangote Refinery at Ibeju-Lekki, Lagos, during an onsite visit as part of its sovereign credit ratings assessment of Nigeria. The visit included officials from the Federal Ministry of Finance.
The international rating agency underscored that the world’s largest single-train refinery complex would significantly bolster Nigeria’s oil sector and positively impact the nation’s growing economy. Ravi Bhatia, Director and Lead Analyst for Sovereign and International Public Finance Ratings at S&P Global Ratings, who led the delegation, emphasized that the Dangote refinery would transform Nigeria into a net exporter of petroleum products.
“This transformation is expected to boost revenue generation and alleviate the current pressure on the country’s foreign exchange reserves,” Bhatia stated. “It is a very impressive facility, able to process 650,000 barrels a day when at full capacity. It is the largest single-train refinery complex in the world. Nigeria is a big exporter of crude but has issues with importing refined fuels. Refining crude domestically will save money and potentially stabilize foreign exchange. This will be positive for the economy in the medium term.”
During a media chat, Devakumar Edwin, Vice President of Oil and Gas at Dangote Industries Limited (DIL), reiterated that the company aims to harness Africa’s abundant crude oil resources to produce refined products locally. This initiative, Edwin noted, will catalyse industrial development, job creation, and economic prosperity. He also confirmed that the refinery would begin producing premium motor spirit (PMS) this month (July), as previously promised.
“The products from this $20 billion facility are of high quality and meet international standards,” Edwin remarked. “The refinery can meet 100 percent of Nigeria’s demand for petrol, diesel, kerosene, and aviation jet fuel, with surpluses available for export.”
The S&P team commended Aliko Dangote, President of Dangote Industries Limited, for integrating advanced technologies and quality control measures, including a state-of-the-art Central Control Unit ensuring smooth automation of operations.
Currently operating at a capacity of 350,000 barrels per day, Edwin stated that the refinery is slated to scale up to at least 500,000 barrels per day by July/August, commencing the refining of petrol and ultra-low sulphur diesel. The refinery is designed to process a wide range of crudes, including various African and Middle Eastern crudes, as well as US Light Oil, conforming to Euro V specifications. Additionally, it complies with US EPA, European Union (EU) emission norms, the Department of Petroleum Resources (DPR) emission/effluent norms, and the African Refiners and Distribution Association (ARDA) standards.
“The refinery can produce the best quality products in the world, Euro V grade. It is one of the most energy-efficient refineries and is highly environmentally friendly. It is sophisticated with a high level of automation. The largest single-train refinery in the world is 100 percent designed, engineered, and constructed by a Nigerian company as EPC contractor,” Edwin said.
Nigeria, one of the world’s leading oil-producing countries, exports all its crude oil for refining and subsequently imports refined products due to a lack of operational refineries. It is estimated that Nigeria imports at least 50 million litres of petrol per day to meet domestic demand. According to data from the National Bureau of Statistics (NBS) in its Foreign Trade Statistics for the Fourth Quarter of 2023, Nigeria spent approximately ₦12 trillion on the importation of petroleum products in 2023, marking an 18.68 percent increase compared to the ₦10 trillion spent on fuel imports in 2022.
