DANGOTE REFINERY EYES 500,000-BARREL PRODUCTION CAPACITY BY JULY
Barring any last-minute changes, the $20 billion Dangote Oil Refinery is set to be listed on the Nigerian Stock Exchange by December 2024. Aliko Dangote, Chairman of the Dangote Group, expressed his desire for Nigerians, Africans, and other investors to become shareholders in the refinery, emphasizing the historic nature of this move.
In a video interview with Africa Report, Dangote stated, “The listing, most likely, I won’t be surprised if we list (on the Nigerian Stock Exchange) by the end of this year. We will do that. You know it is new and I think we would like to allow Nigerians, Africans, and other investors to join in making this historic move.”
Economy and capital market analyst, Rotimi Fakayejo, anticipates the listing to attract about N8 trillion market capitalization on the Nigerian Stock Exchange. He noted that such a listing would draw foreign portfolio investment, thereby increasing the country’s foreign exchange reserves.
“The listing of any company is to distribute wealth and when individuals and corporate organizations buy into a company that is perceived to do well in the present and the future, then it increases the economic wealth and the well-being of the country,” Fakayejo explained. He further highlighted that the refinery would add significant depth to the equity market in terms of quality and quantity, promoting foreign portfolio investment.
David Adonri, Vice President of Highcap Securities Limited, stated that stakeholders eagerly await the listing, which would allow Nigerians to share in the refinery's wealth. “It is a major development for the Nigerian capital market. It will be a momentous event for the capital market because of the share size of that refinery and the depth it will bring to the Nigerian equity stock market,” Adonri remarked.
The Dangote Group chairman revealed that the refinery resorted to importing crude oil from the United States due to fluctuating Nigerian oil production. He explained that the refinery could not rely on Nigerian crude alone, as production levels are inconsistent. Dangote confirmed that the refinery has tendered to buy West Texas Intermediate (WTI) oil from the US to ensure steady production.
Despite the Nigerian Minister of State for Petroleum (Oil), Heineken Lokpobiri, denying knowledge of these imports, Dangote justified the move by citing economic reasons and the need to secure raw materials for production. The refinery plans to attain a production capacity of 500,000 barrels daily by the end of July and its full capacity of 650,000 barrels per day by the end of the year.
Dangote assured that importing US oil would not replace Nigerian crude, as the imports only represent 10% of the refinery’s demand at full capacity. He reiterated that the refinery’s production of petrol, diesel, and jet fuel would significantly reduce Nigeria's reliance on imports, potentially ending the monthly importation of 1 billion liters of premium motor spirit.
The refinery, upon reaching full capacity, will be the largest in Africa and Europe. It has already commenced the sale of diesel and aviation fuel, with petrol expected to hit the market by June. Dangote emphasized that the refinery’s output would meet the fuel demands of West Africa and beyond, contributing to a transformation in the regional fuel market.
Barring any last-minute changes, the $20 billion Dangote Oil Refinery is set to be listed on the Nigerian Stock Exchange by December 2024. Aliko Dangote, Chairman of the Dangote Group, expressed his desire for Nigerians, Africans, and other investors to become shareholders in the refinery, emphasizing the historic nature of this move.
In a video interview with Africa Report, Dangote stated, “The listing, most likely, I won’t be surprised if we list (on the Nigerian Stock Exchange) by the end of this year. We will do that. You know it is new and I think we would like to allow Nigerians, Africans, and other investors to join in making this historic move.”
Economy and capital market analyst, Rotimi Fakayejo, anticipates the listing to attract about N8 trillion market capitalization on the Nigerian Stock Exchange. He noted that such a listing would draw foreign portfolio investment, thereby increasing the country’s foreign exchange reserves.
“The listing of any company is to distribute wealth and when individuals and corporate organizations buy into a company that is perceived to do well in the present and the future, then it increases the economic wealth and the well-being of the country,” Fakayejo explained. He further highlighted that the refinery would add significant depth to the equity market in terms of quality and quantity, promoting foreign portfolio investment.
David Adonri, Vice President of Highcap Securities Limited, stated that stakeholders eagerly await the listing, which would allow Nigerians to share in the refinery's wealth. “It is a major development for the Nigerian capital market. It will be a momentous event for the capital market because of the share size of that refinery and the depth it will bring to the Nigerian equity stock market,” Adonri remarked.
The Dangote Group chairman revealed that the refinery resorted to importing crude oil from the United States due to fluctuating Nigerian oil production. He explained that the refinery could not rely on Nigerian crude alone, as production levels are inconsistent. Dangote confirmed that the refinery has tendered to buy West Texas Intermediate (WTI) oil from the US to ensure steady production.
Despite the Nigerian Minister of State for Petroleum (Oil), Heineken Lokpobiri, denying knowledge of these imports, Dangote justified the move by citing economic reasons and the need to secure raw materials for production. The refinery plans to attain a production capacity of 500,000 barrels daily by the end of July and its full capacity of 650,000 barrels per day by the end of the year.
Dangote assured that importing US oil would not replace Nigerian crude, as the imports only represent 10% of the refinery’s demand at full capacity. He reiterated that the refinery’s production of petrol, diesel, and jet fuel would significantly reduce Nigeria's reliance on imports, potentially ending the monthly importation of 1 billion liters of premium motor spirit.
The refinery, upon reaching full capacity, will be the largest in Africa and Europe. It has already commenced the sale of diesel and aviation fuel, with petrol expected to hit the market by June. Dangote emphasized that the refinery’s output would meet the fuel demands of West Africa and beyond, contributing to a transformation in the regional fuel market.