Why Nigerians Are Praying for the Success of the Dangote Oil Refinery

• The new Dangote Oil Refinery, Africa’s largest, is set to start producing petrol next month. Nigerians hope it will reduce fuel prices and end reliance on fuel imports.
• The $19 billion refinery, led by Aliko Dangote, aims to produce 650,000 barrels of fuel daily, potentially exceeding Nigeria’s current usage and providing cheaper fuel by eliminating import costs.
• While many, like shop owner Lado Danladi, eagerly await cheaper fuel, there are concerns about environmental impact and potential issues from the refinery’s operations, emphasizing the need for additional refineries and careful monitoring.

Why Nigerians Are Praying for the Success of the Dangote Oil Refinery

In Kano, a deeply religious city in northern Nigeria, residents recently gathered for a special prayer session. The focus was on the success of a massive new oil refinery set to begin producing petrol next month.

This might seem unusual, but many Nigerians are hopeful that the Dangote Petroleum Refinery will boost petrol availability and drive prices down.

The $19 billion refinery, located along the coast from Lagos, is nearly the size of 4,000 football pitches. Construction began in 2016, and it started producing diesel and aviation fuel earlier this year. Petrol production is set to begin soon.

Nigeria, despite being Africa’s largest crude oil producer and the 15th largest globally, relies on fuel imports due to the non-functioning government-owned refineries. The Dangote refinery, built by Africa’s richest man Aliko Dangote, aims to change this.

Dangote, who hails from Kano and is worth $12.6 billion according to Forbes, made his fortune in cement and sugar before undertaking this significant project.

The recent prayer session in Kano, organized by local shop owner Lado Danladi, reflected widespread local support. Danladi, who runs a phone-charging shop, expressed his hopes for the refinery:

“I buy $5 worth of petrol daily for my generator due to unreliable electricity. I’m praying for the refinery’s success to end the fuel shortages and make fuel more accessible and affordable for small businesses.”

His concerns are shared by other shopkeepers, such as a meat seller and a drinks vendor, who also face high fuel costs for their generators.

Last year, President Bola Tinubu ended petrol subsidies, causing prices to quadruple. Recent petrol shortages have led to long queues at stations, exacerbated by corruption and inefficiencies in Nigeria’s oil sector.

The Dangote refinery aims to produce 650,000 barrels of fuel daily once fully operational. Devakumar Edwin, Dangote Group’s vice president, expects production to reach 500,000 barrels by August, surpassing Nigeria’s daily usage of 480,000 barrels. The plan includes exporting any surplus.

Abubakar Maigandi, president of Nigeria’s independent petrol marketers, sees the refinery as a solution to logistics issues with imported fuel.

“With local production, we can eliminate import costs and hopefully deal directly with the refinery, reducing complications.”

However, Nigerian public affairs analyst Sani Bala urges caution.

He believes the refinery must significantly reduce petrol prices to have a nationwide impact and stresses the need for additional refineries to avoid over-reliance on one facility.

Environmental concerns also persist regarding potential emissions and the refinery’s impact on nearby communities.

Local youth leader Arepo Azeez has raised concerns about potential environmental hazards, such as vibrations and accidental crude oil spills.

Despite these issues, many, like Lado Danladi in Kano, eagerly await the potential for cheaper petrol and improved fuel availability.