Alhaji Aliko Dangote, President and CEO of Dangote Industries Limited, has announced that the Dangote Petroleum Refinery will be listed on the Nigerian Exchange by March 2025.
This announcement follows another delay in the supply of Premium Motor Spirit (PMS), commonly known as petrol, which has now been postponed to August instead of the previously scheduled July.
Dangote confirmed that the refinery is prepared to distribute petrol by August 2024, having resolved its crude oil supply issues with assistance from the Nigerian National Petroleum Company Limited (NNPC) and the Federal Government.
During a tour of the refinery and Dangote Fertilizer plants in Ibeju-Lekki, Lagos, Dangote stated, “We plan to list the refinery and petrochemical before the end of the first quarter of next year.”
He noted that the refinery had recently overcome supply issues with international oil companies (IOCs). “The issue of crude has been settled last week. But we hope that the IOCs will respect it,” he added.
Dangote also clarified that the Federal Government owns a 7.2% stake in the refinery, contrary to the widely publicized 20%.
Earlier, Devakumar Edwin, Vice President of Oil and Gas at Dangote Industries, accused IOCs of attempting to undermine the refinery by inflating local crude prices by $6 above the market rate, forcing the refinery to import crude from distant countries like the US.
However, with the crude supply issues now resolved, Dangote expressed confidence in meeting production targets. The refinery commenced operations in 2024, initially producing intermediate products such as polypropylene, naphtha, RCO, gasoline, diesel, and jet fuel. Full production is expected to reach 500,000 barrels per day by August 2024, 550,000 barrels per day by the end of the year, and 650,000 barrels per day by the first quarter of 2025.
The refinery’s projected annual revenue is expected to exceed $26 billion. Additionally, it boasts dedicated loading gantries with 86 bays, marine facilities, and substantial storage capacities. It aims to produce 53 million liters of petrol per day, with enough capacity to meet Nigeria’s needs and surplus for export.
Dangote also highlighted significant investments in gas infrastructure, including over 200 kilometers of gas pipelines and various gas processing facilities. These projects aim to stabilize gas pressure and support further investment in Nigeria’s energy sector.
In June, Dangote had assured that the refinery would end Nigeria’s dependence on imported petrol by June 2024. However, the new timeline sets the commencement of petrol production to August 2024.
Moreover, Dangote disclosed plans to list both the refinery and fertilizer plants on the Nigerian Exchange by the first quarter of 2025, aiming to expand its investor base and unlock further value for shareholders.
He also reported a setback in securing a site for the Dangote Petrochemical Facility in Ogun State, which resulted in a $500 million loss due to bureaucratic delays.
Meanwhile, the Dangote Fertilizer plant is set to resume production in two weeks, addressing high demand from both Nigerian and African farmers. The plant has significantly boosted its output, creating numerous jobs and projecting substantial revenue growth.
As the Dangote Group continues to expand, it anticipates substantial increases in revenue and earnings, with a strategic focus on diversifying its income sources and reducing dependency on local markets.
