President Muhammadu Buhari is gearing up to officially open the Dangote refinery, an enormous facility located near Lagos.
As Africa's richest man, Aliko Dangote spearheaded this project, which is considered one of Nigeria's most substantial investments.
The refinery boasts of a pipeline network spanning 1,100 kilometres—the largest of its kind worldwide—and has the capacity to handle 650,000 barrels of oil per day. That's enough to process all of Nigeria's refined product needs, and even leave some left over for export.
The Nigerian government has high hopes for the Dangote refinery, especially as it plans to eliminate petrol subsidies in the second half of the year.
These subsidies have been on the rise, with payments skyrocketing from an estimated N350 billion in 2005 to N4.39 trillion in 2022. For the first six months of 2023 alone, N3.6 trillion has been earmarked for fuel subsidies.
By seeing the completion of the Dangote refinery, the government aims to reduce the reliance on fuel imports and put an end to these subsidy payments.
Aliko Dangote himself highlights the refinery's potential, stating, "Refineries on this scale could save Nigeria up to $10 billion in foreign exchange and generate approximately $10 billion from exports."
He emphasises the impact this facility will have on the Nigerian economy, including job creation, skills transfer, and technology acquisition opportunities.
Moreover, the refinery's production of important products like naphtha and polypropylene will spur the growth of other industries such as cosmetics, plastics, and textiles.
Experts from the International Monetary Fund or IMF, believe that the Dangote Refinery will be instrumental in Nigeria's economic recovery.
They predict that it will lead to increased domestic crude oil production and positively impact the country's gross domestic product or GDP.
The IMF stated, "With crude oil for local refining not subject to the Organisation of Petroleum Exporting Countries (OPEC) quota, the refinery also has the potential to catalyse more domestic crude oil production and boost GDP."
The refinery is expected to contribute significantly to job creation, savings in foreign exchange, GDP growth, and the development of various industries.