Africa’s richest man, Aliko Dangote, is set to open his $20 billion oil refinery outside Lagos in the coming weeks, a project that could transform Nigeria’s economy if it lives up to his lofty promises, reports the Financial Times.
The 650,000 barrel-per-day refinery, billed as the largest such facility ever built at once, could start operating in December, according to Dangote. He told the FT production will begin at 350,000 barrels daily before ramping up to full capacity by end-2024.
If successful, the refinery would allow Nigeria to refine most of its own crude oil instead of spending billions annually to import fuel, a paradox Dangote called “shameful” for a major oil producer.
Skeptics abound after years of delays and costs ballooning to $28 billion, 80% above budget. Some doubt if the technically complex refinery can run efficiently. But Dangote believes his vertical integration model and use of proprietary technologies will succeed where others have failed.
“It’s either we sink or we sail through. And we thank Almighty that at least we’ve arrived at the destination,” he told the newspaper.
Industry experts credit Dangote for investing where others will not, creating thousands of jobs and substituting imports. But critics characterize him as a monopolist who has grown extremely wealthy from cement, sugar and other basic commodities.
Dangote denied speculation he has fallen out of favor with Nigeria’s new administration under President Bola Tinubu, seen as less business-friendly. He also rebuffed accusations of gaining unfair access to subsidized foreign exchange, which is under investigation.
The billionaire said he resolved “issues of supply” to obtain enough oil from Nigeria’s state oil company to launch the refinery. Its success is still uncertain, but Dangote remains upbeat.
“The refinery is done,” he said. “The baby can come out at any time.”
