DANGOTE REFINERY SET TO BOOST NIGERIA’S GDP TO $322 BILLION BY 2025, REPORT REVEALS
A recent report from Data Services & Resources Ltd has projected that the Dangote Oil Refinery will significantly elevate Nigeria's Gross Domestic Product (GDP) to $322 billion by 2025. This forecast comes as the refinery begins its operations, with initial production having started in January 2024.
Key Highlights from the Report:
1. Projected GDP Growth: Without the refinery, Nigeria’s GDP was expected to grow by 3.34% in 2024 and increase to 4.13% by 2030. With the refinery operational, growth rates are anticipated to rise to 4.15% in 2024 and soar to 6.21% by 2030.
2. GDP at Market Prices: The report estimates Nigeria’s GDP will increase from N234.43 trillion in 2023 to N304.8 trillion in 2024, and further to N364.94 trillion by 2025. By 2026, GDP is projected to reach N432.24 trillion, and climb to N806.91 trillion by 2030.
3. Future Projections: The refinery is expected to elevate GDP to $370.49 billion in 2026 and continue rising to $446.98 billion by 2029.
4. Production Capacity: By early 2025, the refinery’s processing capacity is set to reach 650,000 barrels per day, producing significant quantities of gasoline, diesel, and aviation fuel annually.
5. Economic Impact: The refinery will contribute to fiscal sustainability, create numerous jobs, and decrease Nigeria’s dependency on imported petroleum products, thus improving the trade balance.
6. Government Collaboration: The Nigerian government has initiated sales of crude oil to local refineries, including Dangote, in naira as of October 1, 2024, as part of a strategic economic initiative aimed at bolstering local refining capabilities.
7. Investment Opportunities: The refinery's operation is expected to spur growth in various sectors, including oil refining, chemicals, pharmaceuticals, and manufacturing.
The Managing Director of Data Services & Resources Ltd, Afolabi Olowookere, emphasized the positive implications of the refinery on Nigeria's economy, highlighting its potential to strengthen fiscal positions and fund critical infrastructure and social projects.
A recent report from Data Services & Resources Ltd has projected that the Dangote Oil Refinery will significantly elevate Nigeria's Gross Domestic Product (GDP) to $322 billion by 2025. This forecast comes as the refinery begins its operations, with initial production having started in January 2024.
Key Highlights from the Report:
1. Projected GDP Growth: Without the refinery, Nigeria’s GDP was expected to grow by 3.34% in 2024 and increase to 4.13% by 2030. With the refinery operational, growth rates are anticipated to rise to 4.15% in 2024 and soar to 6.21% by 2030.
2. GDP at Market Prices: The report estimates Nigeria’s GDP will increase from N234.43 trillion in 2023 to N304.8 trillion in 2024, and further to N364.94 trillion by 2025. By 2026, GDP is projected to reach N432.24 trillion, and climb to N806.91 trillion by 2030.
3. Future Projections: The refinery is expected to elevate GDP to $370.49 billion in 2026 and continue rising to $446.98 billion by 2029.
4. Production Capacity: By early 2025, the refinery’s processing capacity is set to reach 650,000 barrels per day, producing significant quantities of gasoline, diesel, and aviation fuel annually.
5. Economic Impact: The refinery will contribute to fiscal sustainability, create numerous jobs, and decrease Nigeria’s dependency on imported petroleum products, thus improving the trade balance.
6. Government Collaboration: The Nigerian government has initiated sales of crude oil to local refineries, including Dangote, in naira as of October 1, 2024, as part of a strategic economic initiative aimed at bolstering local refining capabilities.
7. Investment Opportunities: The refinery's operation is expected to spur growth in various sectors, including oil refining, chemicals, pharmaceuticals, and manufacturing.
The Managing Director of Data Services & Resources Ltd, Afolabi Olowookere, emphasized the positive implications of the refinery on Nigeria's economy, highlighting its potential to strengthen fiscal positions and fund critical infrastructure and social projects.