Jan 29, 2024, 6:22 PM
Extract From Dangote Refinery Crude Oil Production Challenges
For the most part, Dangote does not have the favour of the current government. Citizens say this has a lot to do with the elections. Dangote’s ideas have great consequences for the nation.
Aliko Dangote
Aliko Dangote’s influence throughout Nigeria and Africa is greatly supported by his major presence in the private sector in Nigeria.
Dangote is a pioneer and forerunner of industries contingent on the huge employment gaps he covers in the country only after the federal government.
He is easily worth over than $15bn – according to Bloomberg – presumably twice the number when the refinery a $20bn facility on the edge of Lagos city becomes fully functional.
In the Nigerian bourse, Dangote recently hit the N10tn ($11bn) market capitalisation which has never been achieved by any other in the country.
The businesses established under the Dangote title including cement, other consumer products and now a refinery are shielded by good relationships across Nigeria and beyond.
The sitting government headed by Bola Tinubu will be the first to sever that good relationship and take a different approach than the last.
The New State of Dangote Refinery in 2024
Production is finally starting in the Dangote refinery in 2024. It has taken the company years to get to a point where it can focus on growth and gains after overextended budgets.
The 650,000 barrels a day refinery for the first time commenced its crude oil processing with diesel and aviation fuel this January.
The refinery still expects regulatory licenses to sell these products while putting petrol production on hold.
Nigeria could be getting over half its consumption from the refinery when production commences in full and this changes the petrol situation in the country.
This highlight was disrupted by a raid on the Dangote headquarters in Lagos by the Economic and Financial Crimes Commission. This was a component of the recent probe into the central bank and is void of all political favours for Dangote.
The sitting government particularly considers the nine-year tenure of Godwin Emefiele as the Central Bank of Nigeria governor a term of foreign exchange mismanagement
This was the term of the former president Mohammadu Buhari.
A special investigator assigned by Bola Tinubu alleges that certain industries benefitted from the exchange rate.
The company nulls all allegations against it. In a statement, Dangote justifies its expansion funding of $3.8bn, saying that the central bank had given it approval between 2010 and 2018.
“We wish to re-emphasise that foreign exchange for these projects was sourced strictly from the interbank foreign exchange market in compliance with the CBN approvals,” the statement said.