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Aliko Dangote, Africa’s richest particular person, opened his close to $20bn petroleum refinery and petrochemical plant on Monday and outgoing President Muhammadu Buhari was readily available to fulfill a craving he has all the time needed to reduce the tape.
Dangote’s refinery mission was first mooted in 2013 and to be accomplished by 2016 however development didn’t begin until 2017, reflecting the failure of the federal government in Africa’s most populous nation to place in place an efficient assist mechanism to take excessive affect mission plans from the drafting board to completion.
Secondly, the plant has a completion value goal of $18.5bn of which solely $3bn is excellent in financial institution credit score, Dangote having paid down practically all of the over $9bn that was borrowed to fund the development.
Thirdly, the refinery will get rid of Nigeria’s $26bn foreign-exchange invoice for the import of refined petroleum merchandise and fertilizer, $23.3bn and $3bn respectively.
Fourthly, the primary product from the refinery won’t get to the market earlier than July, most likely August. So, Nigeria will nonetheless have to attend.
Right here is the fifth truth to know. Of the refinery’s complete capability of 650,000 barrels of crude oil a day, 450,000 barrels can be devoted to assembly home requirement.
Sixthly, when totally operational, the complicated is anticipated to earn as a lot as $21bn in annual earnings.
Learn additionally: Dangote repays 70 p.c of refinery debt, merchandise to hit market August
Nigeria by the NNPC restricted maintain a 20% fairness within the refinery and the refinery will initially obtain 300,000 barrels of crude oil each day from the NNPC.
Regardless of the bullish feedback on the commissioning on Monday, petrol entrepreneurs say there was no dialogue on merchandise pricing and merchandise evacuation from the refinery.
Lastly, whereas there may be celebration in Lagos particularly on the host communities the knives are out in Ondo and Ogun with folks asking why the federal government of the 2 states missed out on the provide to host the refinery earlier than a call was then taken to maneuver the situation to Lagos.
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