An online video purporting to show the first shipment of oil being transported to the Dangote Refinery is making the rounds.
The first batch of crude feedstock for Dangote’s 650,000 b/d refinery has arrived in the nation, according to reports earlier today.
According to Naija News, the development means that, after years of waiting, gasoline production at the new $19 billion complex is finally ready to begin.
950,000 barrels of Agbami crude were reportedly loaded onto the OTIS tanker on December 6 and released at the Dangote refinery terminal on Thursday (yesterday).
When Dangote’s refinery starts to ramp up operations, the Nigerian National Petroleum Company (NNPC) charters the Suezmax vessel as its primary crude source.
The privately owned refinery was formally completed in May, but because there isn’t enough domestic crude feedstock, it can’t create any oil products. NNPC, a company that owns 20% of the refinery, has just committed to supply 6 million barrels of crude oil to the facility in December in order to feedstock it.
A video highlighting the refinery’s aerial view can be seen below, amid conflicting reactions to the aforementioned shipment to the Dangote Refinery:
“It Is Senseless To Ship Crude And Not Provide The Dangote Refinery” – Rewane
Meanwhile, Nigeria’s strategy for exporting crude oil has come under fire from eminent economist and managing director of Financial Derivatives Company Limited, Bismarck Rewane, specifically pointing to the country’s own Dangote Refinery.
Rewane emphasized on Channels Television’s Business Morning program the need of providing crude to the Dangote Refinery.
He underlined that, especially after striking a deal for roughly six million barrels, this would allow Nigeria to refine oil locally and export refined petroleum products to West African countries.
According to the economist, it is incomprehensible for Nigeria to be exporting petroleum under forward contracts while being unable to refine its own oil for the benefit of its own people, as well as for the people of West and Central Africa.
It is anticipated that in 2024–2025, this refinery would be listed on the Nigerian Stock Exchange. Listing this $19 billion to $20 billion investment raises the Nigerian Stock Market’s market value by 60%.
In addition, the Dangote Group itself pays about N146 billion in taxes and N357 billion in dividends to shareholders annually.
Thus, with annual taxes of N357 billion and N146 billion, it is not a capitalist investment; rather, it is democratizing the shareholder process, just like MTN did when it was a private business.
Everyone in the community is pleased with MTN’s dividend announcement today since its ownership has become more democratic. It has transformed to the point where it is now regarded as Nigerian. These businesses, which are prominent and leaders in every industry, are experiencing the same issue.
Aliko Dangote owns the refinery, which is scheduled to start producing 350,000 barrels per day in December.
