his plans to expand his industry to the oil sector. Sometime in 2014,
the CEO of Dangote group of companies announced that his team was
setting up a refinery in Lagos. He also said that the refinery will be
an answer to Nigeria's prevailing oil problem, adding that it would be
ready by middle of 2018.
Recently Dangote told Reuters that the refinery will churn out
650,000 barrels of crude oil. He also revealed the cost of the
structure to be in excess of $12 billion. Even uptil now, Nigeria
idealy the largest produce and exporter of crude oil in Africa and
among the top 10 in the world, still suffers from scarcity of refined
petroleum products. Which is very terrible and it's as a result poor
maintenance of the refineries in the country.
But once some level of responsible privatisation has come to the
rescue, and a fifth refinery is gradually standing up to its feet in
the western hub of Lagos.
Despite the economic downturn in the country, it still comes as a
relief to inspire hope. Things have been difficult, commodities
expensive and the standard of living at a terrible low, but Dangote is
still moving to test solids fields. Dangonte also added that the
refinery will attempt to kill two birds with one stone. In that while
cartering for the demand for oil by the masses, it also will run a
fertilizer plant worth $2 billion dollars. This no doubt will help
Nigeria in its probe into developing agriculture. And farmers can get
access to fertilizer easily.
Project Funding:
Dangote revealed that the project which is set to begin production by
2019 was being funded by loans from banks, investment from export
firms, and the company's available equity. He also added that the
World bank and CBN had also made contributions. There was also some
word from him about plans to run a natural gas line around West
Africa. This will also be backed up by the power of the plant. And
that would be great as Nigeria ranks amongs the top ten countries in
terms of her natural gas reserves.
But still on his cement line, he plans to build factories all
over Africa, as part of a plan to triple overall cement production.
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