Dangote reveals why he is importing crude from other African countries

• Aliko Dangote has given several reasons for wanting to import petrol from other African countries
• Dangote stated that the company has begun talks with other oil-producing countries in Africa for a feedstock
• He disclosed that the reason is due to the lack of the product in Nigeria, disclosed that NNPC has reduced its stake to 7% in the company

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment, and the economy for over a decade.

The Chairman of the Dangote Refinery, Aliko Dangote, has explained why his refinery will continue to import crude from abroad, especially from other African countries.

He said the 650,000 bpd-capacity refinery will start crude imports from other African countries in October due to non-availability in Nigeria.

Chairman of the Dangote Group, Aliko Dangote, discloses reasons for importing crude oil. Credit:Bloomberg/Contributor
Source: Getty Images

Dangote imports crude from Brazil and the US

The Nigerian industrialist stated that his company will source crude from other African countries after importing it from the US and Brazil recently.

He disclosed this during a tour of the Dangote Refinery on Saturday, July 13, 2024.

According to reports, Africa’s richest man said he expects to purchase feedstock from the US and Brazil in the coming months.

Libya, Senegal, and Angola to supply crude to Dangote

He says talks are ongoing to secure feedstock from other oil-producing countries such as Angola, Senegal, and Libya.

He said:

“We will start importing crude oil from African countries. When we get to those countries, we’ll start negotiating with them. We’ll start bringing in from there,” he said.“We have just bought from the US and Brazil. So, I think we’ll expand the scope to most African countries by next month.“If we have availability in Nigeria, we won’t have to turn to these other countries,” Dangote added.

Reports say Dangote said the the $20 billion refinery will release petrol into the Nigerian market in August, which analysts say might crash the commodity’s price.

The development comes as the refinery management accused international oil companies (IOCs) and local oil producers of plots to sabotage the refinery.

Dangote accuses IOCs of sabotage

Devakumar Edwin, vice president of Oil and Gas at Dangote Industries Limited (DIL), accused international oil companies (IOCs) in Nigeria of trying to frustrate the survival of Dangote Refinery and Petrochemicals.

He said the IOCs deliberately and wilfully frustrate the refinery’s efforts to purchase crude oil by inflating the prime price above the market value, thereby compelling the refinery to import crude from other countries such as the US.

Meanwhile, the IOCs and other oil producers have agreed to supply crude refineries in Nigeria, ending the longstanding dispute between the producers and domestic refineries.

NNPC replies Dangote as its stake plunges to 7%

Legit.ng earlier reported that the Nigerian National Petroleum Company Limited (NNPCL) has clarified statements made by Aliko Dangote, Africa’s richest man, regarding its stake in the Dangote Refinery.

Dangote had disclosed that the NNPC’s shareholding in his refinery had been reduced to 7.2%, contrary to the widely held notion of 20%.

Reports claimed that the reduction was due to NNPC’s limited failure to pay the balance of funding owed to Aliko Dangote.

Source: Legit.ng