Wednesday, July 17, 2024
Business

Aliko Dangote plans public listing of $20bn refinery on Nigerian Exchange – Business Insider Africa

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Aliko Dangote, Africa’s richest man has announced intentions to publicly list his Dangote Petroleum Refinery on the Nigerian Exchange Limited.
Dangote made this known in an interview with the Financial Times, stating that the company has resolved challenges about crude oil supply and is now prepared for the listing.
The move aligns with Dangote’s broader business strategy and could impact the company’s valuation and investor engagement positively.
Read also: Africa’s largest oil producer: Nigeria is set to initiate another oil refinery project
“We have resolved all the issues with crude oil supply,” Dangote stated. “We are now ready to move forward with our plans to list the refinery on the Nigerian Exchange Limited.”
“We are starting with 350,000 barrels a day. The challenges that we faced, I don’t know whether other people can face these challenges and even survive. It is either we sink, or we sail through. And we thank Almighty that at least we have arrived at the destination.”
Nigeria is Africa’s largest oil producer, but it imports refined petrol despite having four refineries that have become dysfunctional. Oil explorers in the country export crude to foreign refiners and import it back to the country for sale to downstream players, eroding its foreign exchange reserves.
Read also: Want to be as rich as Africa’s richest man? Here’s the one strategy you need
Dangote’s $20bn refinery is poised to be a game changer. However, due to persistent delays and cost overruns, doubts emerged about whether Aliko Dangote, Africa’s wealthiest individual, would ever complete the project.
The businessman revealed that the refinery which is expected to produce diesel, kerosene and jet fuel, would start operations in December.
He mentioned that a deal has been finalized for the “first cargo of about 6 million barrels,” scheduled for delivery next month.
At its full planned capacity, the refinery would be able to produce 650,000 oil barrels per day, subsequently, with an initial rollout of 540,000 barrels per day.
The refinery, expected to generate 27 million litres of diesel, 11 million litres of kerosene, and 9 million litres of jet fuel, will source crude from various producers in Nigeria, including the country’s state oil company.
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