The Dangote Refinery, located in Lekki, Lagos, Nigeria, is the largest single-train refinery globally.
Owned by the Dangote Group, which is led by billionaire Aliko Dangote, the refinery has a capacity of 650,000 barrels per day.
The refinery is expected to reduce Nigeria’s dependence on imported refined petroleum products and boost the nation’s economy by meeting domestic fuel demand.
The refinery also has a petrochemical plant and fertilizer facility.
MyNigeria lists 5 major benefits of the Dangote refinery to Nigerians and the country at large, below:
1. It will boost Nigeria’s foreign reserves
The Dangote refinery is estimated to produce 650,000 barrels per day and since it can be exported, it will improve the country’s foreign reserves.
A Nigerian energy expert, Yomi Sola Falana, stated: “The expected exportation of the refined petroleum products by the Dangote Refinery will enhance the country’s foreign currency earnings and thus result in boosting Nigeria’s foreign reserves.”
2. More jobs for the youth
The Dangote refinery will offer direct jobs to the Nigerian youth and generally improve standards of living.
Joe Nwakwue, the president of the Nigeria Society of Petroleum Engineers stated: “When we export crude to Europe and import fuel, we export jobs and put pressure on our scarce foreign exchange.
“The refinery will save us from that and create thousands of direct and indirect jobs.”
3. Foreign exchange
Nigeria would be saving $26 billion yearly from petrochemical plants and fertilizer importation.
The country will no longer import diesel, petrochemicals etc and will save more than $26 billion in foreign exchange.
4. Stability of the naira
With the operation of the refinery, the naira is expected to be stabilized as there will be corrections to distortions in the value of the local currency compared with the dollar.
Aliko Dangote stated in an interview: “This will give a lot of stability for the Naira, where now you remove 40 percent of the demand for dollars in the market, and that will stabilise the market.”
There will also be an end to a phenomenon call round-tripping, where people now do documentation and the fuel does not come into Nigeria.
5. Purity of product
The fuel produced by Dangote refinery is pure and has a water-like nature.
Reports indicated that ethanol was used as part of the components of the fuel.
Ethanol improves engine efficiency and power.
Ethanol has a good amount of oxygen and lessens the amount of carbonation in engines by reducing air pollution which comes as Carbon dioxide. That is the best form of petrol.
Source: www.mynigeria.com
