Dangote refinery to boost GDP by $52bn, 0.8% annually ― Edwin

DANGOTE refinery, when completed, will boost the country’s gross domestic product (GDP) by $52billion per annum which represents 0.8 per cent growth per annum, improve trade balance by $9.9billion per annum, reduce crude exports by $14.7billion per annum and also reduce fuel importation by $17.9billion per annum, according to Mr Devakumar Edwin, Group Executive Director, Dangote Group.

Speaking during a panel session on “Promoting Efficiency and Clean Fuels in African Refining and Petrochemicals Market” at the Oil Trading and Logistics (OTL) conference in Lagos on Tuesday, Edwin, who was represented by the Director Business Strategy and Optimisation, Dangote Refinery, Mr Srinivas Rachakonda, described the refinery as one of the most strategic socio-economic projects in Nigeria, features the largest single train petroleum refinery in the globe (650,000 bpd).

He said that Dangote Oil Refinery Company (DORC) has been designed to process a variety of light and medium grades of crude and produce extremely clean fuels that meet Euro V specification.

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The Dangote boss said that the Sulphur in petroleum fuels results in vehicle exhaust emissions that have negative impact on health and environment.

He said that Dangote Refinery is investing in most advanced units to produce Euro V fuel due to help Nigeria meet the European Standard of gasoline.

Edwin said that the construction of the Refinery will provide thousands of direct and indirect jobs and add value to Nigeria’s economic development.

He noted that the Refinery will lead to significant skills transfer and technology acquisition opportunities in the country.

He said that the Group has embarked on a landmark integrated Refinery and Petrochemical project, regarded as the largest industrial complex in the history of Africa, which is expected to take Nigeria to new heights through transformation of the economy.

According to him, the refinery will ensure that the security of local supply of petroleum products is guaranteed as well as the availability of petrochemical feedstock (Poly-propylene & Polyethylene), which will be enough for the Nigerian market as well as the neighbouring countries.

He said that the first phase is expected to deliver gas for the use of Dangote Industries, including the proposed fertiliser plant in the refinery complex, and other identified industrial and power plant users.

Speaking during the session, former Executive Secretary of the Petroleum Product Pricing Regulatory Agency (PPPRA), Mr Reginald Stanly, said Dangote Refinery is going to be a game changer for the entire African downstream industry.

Stanley said that the refinery would attract global attention and market when completed, adding that the initiative has raised hope for other African countries on the viability of investing in a huge refinery.

He said the refinery would open a sub-regional market with a West African price index for countries in the sub-region.

He said when the refinery becomes operational, Nigeria’s import of products would stop or reduce drastically, and the cost of products imports from Europe and Asia by smaller consuming countries around Nigeria would be expected to increase.