Although the refinery is still in construction in Lekki, Lagos Nigeria, the facility is stated to have a capacity of 650,000 barrels of crude oil per day. A close second in Africa would be Egypt’s Bashandyoil crude oil refinery which, although still under construction will be producing 300,000 barrels of crude oil per day.
Seeing the huge potential of the refinery, Nigeria has also given its state oil firm, the Nigerian National Petroleum Corporation(NNPC) the green light to acquire a 20% stake in Dangote’s oil refinery for $2.76 billion.
The has NNPC had said its move to work with private companies was in line with safeguarding the country’s energy security and would not undercut plans to rehabilitate its own refineries. It has also signed term sheets with Dangote Group for the stake in its $19 billion oil refinery and is in talks with
banks to raise loans to acquire the stake.
Reacting to the development, Prof. Chris Onalo, Registrar and Chief Executive Officer, Institute of Credit Administration, said oil and gas remains the major source of revenue for the government which requires massive investment in the sector. Onalo said the Dangote Group had made a huge investment that was needed to jumpstart the industry and therefore needed the support of all including the government.