Nigeria: Dangote refinery to gulp N1.7tn crude monthly – Report

The Dangote Petroleum Refinery is projected to require approximately N1.7 trillion worth of crude oil monthly, according to recent reports. This significant demand underscores the refinery’s scale and its anticipated impact on Nigeria’s oil and gas sector.

The facility, one of the biggest in the world, has a daily processing capacity of 650,000 barrels of crude oil. The goal of this massive project is to increase Nigeria’s energy security by turning the nation from a net importer of refined petroleum products to a self-sufficient producer.

The ability of the refinery to handle such a big amount of crude oil will have an impact on regional and global oil markets as well since it may change the dynamics of supply in the area.

Furthermore, it is anticipated that the Dangote refinery’s operationalization would spur economic growth in Nigeria and provide a large number of employment possibilities. The refinery is expected to boost the country’s foreign exchange revenues by producing excess gasoline for export in addition to meeting local fuel demands.

However, the refinery’s operational viability and profitability are called into doubt by the financial consequences of procuring N1.7 trillion worth of petroleum on a monthly basis.

According to analysts, in order to efficiently manage such significant expenses, the refinery will need to build strong supply networks and bargain advantageous terms with suppliers of crude oil.