An end appears imminent for the long-standing reliance of African countries on refined petroleum products from European refiners as Dangote's massive refining facility in Nigeria begins operations.
For years, African nations have
depended on the importation of white products from Europe, amounting to a net
value of $17 billion annually.
The commencement of refining
operations at the Dangote oil refinery marks a significant turning point,
according to analysts and traders who spoke to Reuters. This move is expected
to disrupt a decades-long petroleum trade from Europe and exert pressure on
European refineries, already facing closure risks amid heightened competition.
Built at a staggering cost of
$20 billion, the Dangote refinery started production in January. With a
capacity to refine up to 650,000 barrels per day (bpd), it is set to become the
largest refinery in both Africa and Europe upon reaching full capacity.
The facility represents a
crucial milestone in Nigeria's quest for energy independence, as the nation has
historically relied heavily on fuel imports due to a lack of in-country
refining capacity.
According to the Economic
Intelligence Unit (EIU), output from the Dangote refinery is anticipated to
displace Nigeria's fuel and chemical imports in 2024, further solidifying the
country's move toward self-sufficiency in the energy sector.
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