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Dangote Refinery Faces Challenges as IOCs Refuse to Sell Crude Oil

IOCs not selling crude oil to Dangote refinery_ Chairman
IOCs not selling crude oil to Dangote refinery

Aliko Dangote, Chairman of the Dangote Group, revealed in a CNN interview that international oil companies (IOCs) in Nigeria are unwilling to sell crude oil to the 650,000-barrel capacity Dangote oil refinery.

Dangote attributed this reluctance to IOCs’ long-standing practice of exporting crude oil for foreign exchange, expressing their unwillingness to discontinue this practice.

Despite the Nigerian National Petroleum Company Ltd’s (NNPC) efforts to supply feedstock to the refinery, IOCs prefer to sell outside the country.

Dangote lamented Africa’s economic stagnation, citing the export of raw materials and import of finished goods as a primary reason.

The Dangote refinery has signed an agreement to import 24 million barrels of crude oil from the United States and will take 21 million barrels of crude oil from Nigeria monthly, reducing CO2 emissions and reliance on international imports.

Dangote expressed pride in the refinery’s achievement, stating that it demonstrates Africa’s capability to refine and distribute crude oil.

He acknowledged the challenges faced, admitting that he would not have pursued the refinery project if he had known the extent of the difficulties involved.

The refinery is expected to start generating revenue soon, with Dangote emphasizing the greater satisfaction of contributing to Africa’s growth and development.

This Article is Fact-Checked. See Policy.

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