Dangote’s refinery is important to Nigeria increasing its oil capacity – NNPC boss

On Thursday, April 25, the managing director of the Nigerian National Petroleum Corporation (NNPC), Maikanti Baru, said that Aliko Dangote’s Lagos refinery is central to oil generation capacity of the country.

 According to Council on Foreign Relations, the NNPC chief said that when the refinery is completed, its production capacity is estimated at 650,000 barrels per day (bpd), which would more than double the present capacity.

 For years, Nigeria, which is regarded as the largest oil producer on the continent, has been importing its refined products because it lacks refineries.

As a consequence, these imports have been having a negative effect on the country’s economy, especially the nation’s foreign reserves. Presently, there are four state-owned refineries but they can barely meet their expected 445,000 bpd capacity due to lack of good management, neglect and constant attack on oil pipelines by militants.

 There is a strong belief that Dangote’s investment in the Lagos would go a long way in improving the country oil outputs going by his track record and net worth.

President Muhammadu Buhari also recently revived the goal of increasing the country’s oil production capacity to 4 million barrels a day.

The 4 million goal was launched during the Olusegun Obasanjo administration (1999-2007) but was stalled because of security issues and the uncertainties in the international market. However, with the involvement of Dangote, achieving 1.5 million barrels a day is almost impossible.