Aliko Dangote, Africa’s richest individual and owner of the continent’s largest new refinery, met with Nigeria’s President Bola Tinubu on Tuesday to address challenges regarding crude supply and fuel distribution in Nigeria. This emergency meeting included representatives from the country’s oil industry regulators and key officials.
Since its launch earlier this year, the Dangote refinery has encountered difficulties securing crude oil. The facility began producing fuels in January 2024, marking the culmination of years of delays. With a processing capacity of 650,000 barrels per day, the refinery aims to meet all of Nigeria’s demand for refined petroleum products, while also planning to export surplus products. However, it has yet to reach its full capacity, which is anticipated for next year.
Dangote highlighted the need for the meeting, stating, “We’re meeting to make sure everything is put together. There are a lot of issues about the exchange rate and pricing,” as reported by the Financial Times.
There have been rumors suggesting a rift between Dangote and President Tinubu, with claims that the current administration is less supportive of Dangote’s business than the previous one. Additionally, speculation has arisen about Dangote’s relationship with the state oil firm, NNPC. However, Dangote clarified that his relationship with the president remains strong, insisting they are on good terms.
Earlier this month, the Dangote refinery received four cargoes of crude from NNPC under a sales agreement, with payment to be made in Nigeria’s local currency, naira.
Dangote aims to eliminate Nigeria’s reliance on fuel imports with the new refinery. Currently, Nigeria, Africa’s largest oil producer, imports all the fuel it consumes. However, Dangote expressed concerns about an “oil mafia” that is allegedly exporting crude and importing cheaper options, including those from Russia, which he claims threatens his plans for the refinery.
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